KUALA LUMPUR: Bina Puri Holdings recently held a grand event uniquely termed ‘The Appointment of Signature Partners Ceremony for Opus Tower II’. The inking of a signature partnership agreement between the developer with Calvin Klein Furniture and Gorenje kitchen appliance supplier is set to amaze the public with their exceptional take on lavish lifestyle living.

Bina Puri Group executive director Matthew Tee (third from left) holding a signed document of a signature partnership agreement with Calvin Klein Furniture president-CEO Michael Foster (third from right) for Opus Kuala Lumpur. With them are (from left) Ng Keong Wee, Dr Tony Tan, Tan Sri Dato’ IR Wong Foon Meng, Tan Sri Dato’ Seri James Foong Chen Yuen and Lionel Choo.

This symbiotic relationship is Bina Puri’s move to push the boundaries in value-adding, by equipping all 357 units to the hilt with designer fittings and quality kitchen appliances. Their aim is to raise the bar on posh condo living in the heart of the city, where a myriad of superb factors come together to give its residents an experience like no other.

Calvin Klein Furniture was selected to tastefully appoint each and every unit with luxurious furnishings, all of which take inspiration from the acclaimed international brand of the same name that is renown for its apparels and accessories.

Bina Puri Properties Sdn Bhd chairman Tan Sri Dato’ Seri Dr James Foong Chen Yuen said, “What is appealing in this brand name is the young, accessible, fresh and modern approach that they embrace aside from being elegant, sophisticated, practical and with high standard of finishing”.

The Gorenje Group is a leading European home appliance manufacturer, being the world’s 8th largest and supplying to 90 countries worldwide. They were chosen to provide their contemporary state-of-the-art devices to each unit. Gorenje’s focus lies in their core products that are technologically perfected, exceptionally designed and effectively energy-saving.

When it comes to ensuring that the structure of the building is strong and solid, the foundation engineering is of paramount importance. This is where another signature partner in this tripartite partnership comes in: Bauer (M) Sdn Bhd. They are a German brand that has become a household name in the construction industry, and their brand is combined with the elements of trust and reliability.

Scale model of Opus Kuala Lumpur on display at the signing ceremony of signature partnerships between Bina Puri Properties Sdn Bhd and two international brands, Calvin Klein Furniture and Europe’s Gorenje kitchen appliance supplier.

Luxury at an affordable price
Opus Tower II consists of two 32-storey towers with a gross development value (GDV) of RM334 million. It will be constructed on one of the last few available pieces of prime freehold Kuala Lumpur land, an area that is rich with historical nuances. Within these impressive walls are the units, with built-ups ranging from 700 – 1,100 sq ft. What’s even more notable is that they come with an initial price tag of RM1,500 to RM1,600 per sq ft.

“Early buyers of this prestigious development will get to enjoy lower entry prices of between 25% and 30% compared to prime real estate prices within vicinity of other KL landmarks such as KLCC, Pavilion or KL Sentral,” said Bina Puri Holdings Bhd director and group executive director Tan Sri Tee Hock Seng.

Gorenje Group regional sales manager for South Asia Janko Le Ulaga (third from right) and Bina Puri Group executive director Matthew Tee (third from left) showing the signed agreements. With them are (from left) Ng Keong Wee, Dr Tony Tan, Tan Sri Dato’ IR Wong Foon Meng, Tan Sri Dato’ Seri James Foong Chen Yuen and Lionel Choo.

Indeed, located directly opposite Opus Tower II is an upcoming colossal development that is poised to become the next epicenter of Kuala Lumpur, the 118-storey Menara Wawasan. Described as one of the world’s tallest buildings, it is projected that this dazzling commercial complex’s tenant pool will contribute towards a high rental yield on Opus Tower II’s units.

Sales of Opus Tower II is already brisk, despite it being the first week of its launch camaign, with almost 50% of the units sold. Many of the buyers are repeat customers who know that they are buying a valuable piece of iconic property. There is even some interest from overseas buyers, where 10% to 12% of them are from countries such as Hong Kong and Taiwan.

The post Bina Puri and two luxury brands raise the bar appeared first on Malaysia Premier Property and Real Estate Portal.

Sunway Iskandar organised green initiatives in conjunction with the World Environment Day, to benefit the community.

(From L to R) Property Development Division (Malaysia and Singapore) deputy managing director Tan Wee Bee, Sunway Group corporate advisor Tan Sri Dato’ Dr. Ramon V. Navaratnam, US ambassador Joseph Y. Yun, Dr. Melanie Billings, EcoKnights president Yasmin Rasyid, Property Development Division (Malaysia and Singapore) managing director Sarena Cheah and other representatives.

JOHOR BAHRU: In conjunction with the World Environment Day (W.E.D), Sunway Property, the master community developer, in partnership with non-­profit NGO, EcoKnights, welcomed the United States’ ambassador Joseph Y. Yun to Sunway Iskandar.

As part of an international effort to create awareness in preserving the environment, Yun, his wife, Dr. Melanie Billings, and ten delegates participated in the #GoGreenLah! cycling expedition from Putrajaya to Singapore. The convoy made several pit stops along the journey which include a stopover in Sunway Iskandar.

Sunway Iskandar was visited due to its notable sustainable efforts across its developments, especially Sunway Resort City which is the first green township in Malaysia to be awarded the Green Building Index (GBI). Following this, Sunway Iskandar will also include sustainable and green elements into the master­plan of the Nature’s Capital City.

“I compliment Sunway Property and EcoKnights for this joint effort in supporting sustainable development and promoting environmental awareness. This project portrays how responsible a developer can be in benefitting the community and the environment,” said Yun.

“We are honoured to have ambassador Yun, Dr. Billings and the delegates at Sunway Iskandar. As a master community developer, we are committed to develop sustainable townships across the region, as demonstrated in Sunway Resort City, Iskandar and Sunway City, Ipoh. Nurturing the community to create environmental awareness is also one of our key drivers, as we want to ensure a truly liveable city for our residents and visitors,” said Property Development Division (Malaysia and Singapore) managing director Sarena Cheah.

Collaborating with EcoKnights for the second time in Johor, the W.E.D celebration witnessed Sunway Iskandar’s plans to adopt 75,000 trees across the 728 ha township as part of their community-driven efforts.

Attendees released more than 1,500 fishes into the Emerald Lake, led by the representatives of Sunway and the US Embassy.

Some of the other green initiatives include the planting of six different types of fruit trees around the Emerald Lake Garden, and more than 1,500 fishes were released into the tranquil Emerald Lake. An education corner was also established by EcoKnights.

EcoKnights president Yasmin Rasyid, applauded Sunway’s enthusiasm to actively encourage and educate the communities around Malaysia to participate in acts of green.

“Sunway Iskandar is blessed with many beautiful natural elements and we are excited to be working with Sunway to preserve Mother Nature. We also thank the organisation for their generous contribution to enable us to fuel more green-­the-­earth EcoKnights activities,” said Yasmin.

Set to be a world-­class city balanced with the beauty of nature and the sophistication of a modern city reflected through its tagline, Nature’s Capital City, Sunway Iskandar will be an integrated township with a total of 283 ha featuring lush mangrove and green forests, Sungai Pendas, and Straits of Johor. As the master community developer, Sunway ensures that the community is always connected to nature no matter where they are while still enjoying the luxury of a city.

The post Sunway Iskandar builds environmental awareness with #GoGreenLah appeared first on Malaysia Premier Property and Real Estate Portal.

BY CAITLYN NG LI YUIN
and NURUL ASMUI MD AZMI

Petaling Jaya: The first day of the StarProperty.my Fair at Tropicana City Mall saw a large crowd of visitors eager to view the latest projects by more than 20 renowned exhibitors. Among the developers present were Glomac Berhad, IJM Land, Nusmetro Ampang Sdn Bhd, UEM Sunrise Berhad, Matrix Concepts Holdings Berhad, Mah Sing Group, Sime Darby Brunsfield and DK-MY Properties Sdn Bhd.

StarProperty.my Fair is at Tropicana City Mall until 14 June, Sunday.

Visitors to the StarProperty.my Fair were treated to a wide variety of showcases ranging from landed properties to high-rise serviced apartments and commercial units. Also at the fair are developers offering affordable homes such as ASPIRASI (a wholly owned subsidiary of Syarikat Perumahan Negara Berhad (SPNB), i-City and Mah Sing.

Some of the developers had a few words of advice for visitors.

“It is important for first-time homebuyers to purchase a property that is within budget, and also in a good location with capital appreciation,” said Mayland marketing manager Brian Thien.

Titijaya sales executive Jason Lee echoed that statement. “It’s not only the first-time homebuyers who have to survey the market. Investors will also have to do the same, so that you will have a fixed mindset of what to purchase and where,” he said.

Lots of Q&A sessions at the fair.

Exclusive specials at the fair
ASPIRASI is featuring three pre-launch promotions for Eighteen@Cyberjaya, and serviced apartments in Ampang and Kampung Chubadak Tengah, Setapak, respectively.

Mayland, which is showcasing Regalia and Hermitage, has a special package offering a 7% cash rebate. Regalia is a completed project at Jalan Kuching with only several units left for sale, whereas Hermitage is an ongoing project priced from RM480,000 and slated for completion in June 2016. The layouts for Hermitage are studio, 1-bedroom and 2-bedroom units.

Titijaya Land Bhd has three dazzling properties – 3Elements in Seri Kembangan (a leasehold mixed development consisting of serviced apartments, SOFO blocks, shop offices and retail mall), H2O Residences in Ara Damansara (serviced apartments from 750 – 1,000 sq ft, and SOHO units from 449 – 1,500 sq ft), and Kemensah Heights in Ampang which consists of courtyard villas that are 4,522 sq ft to 5,502 sq ft (Embun) and semi-D villas that are from 3,946 sq ft to 5,475 sq ft (Emery). Units at Kemensah Heights are priced from RM2mil upwards.

Another notable developer is Gamuda Land, who is also featuring three developments. HighPark Suites in Kelana Jaya consists of two towers of serviced apartments where the units come in built-ups sizes of 440 sq ft to 840 sq ft, with a price range of RM950 – RM1,000 psf.

Built-up sizes for The Robertson serviced apartments in Jalan Pudu is from 527 sq ft to 807 sq ft, with a price range of RM1,400 – RM1,600 psf.  Visitors should also check out Jade Hills, Kajang. The Jadite Suites located within is a serviced apartment development, featuring units with built-up sizes from 1,206 sq ft to 1,464 sq ft, with a price tag that starts from RM597,000. The final block is now open for sale.

Gamuda senior sales executive Mike Sing shared, “It is best to think long-term and purchase a property as soon as one is financially secure since property appreciates so quickly. However, it is best to purchase from a reputable developer who guarantees quality.”

Prizes to be won
Visitors who participate in a quick survey will stand a chance to win a Samsung Galaxy Tab 3 Lite or a one-year subscription of The Star ePaper worth RM350. Property buyers who purchase properties at the fair should submit their sales order form at the StarProperty.my station for a chance to win Senheng cash vouchers worth RM888, RM2,888 or RM5,888.

Chance to win these prizes at the fair.

This event will be held until Sunday, from 10am – 10pm. Admission is free.

For more information, log on to fair.starproperty.my

The post A good mix of showcase at StarProperty.my Fair appeared first on Malaysia Premier Property and Real Estate Portal.

BY WONG WEI-SHEN

Developers hope policymakers consider possible implications on Negri Sembilan’s property market

Joint efforts: Market players say affordable housing is a social issue, and hence the individual state governments should get involved and not place the responsibility solely on the developers.

THE new housing policy in Negri Sembilan is causing a stir, with speculation that it could mean higher prices for homebuyers and the exit of some developers from the state. The battle between profits and home quality could also come into question, with the policy possibly being equated with higher costs for developers.

At risk is the Malaysia Vision Valley, a 108,000ha project under the 11th Malaysia Plan (11MP) in Negri Sembilan, which aims to be an integrated development that will complement the Klang Valley.

How the new policy could affect the state, as well as the Vision Valley project, will be more transparent only when details are released. It is a known fact that land prices are no longer cheap. In many cases, the land costs make up for between 20% and 30% of the total cost for developers.

“If developers buy a piece of land in a prime location and the enforced rule is to build 50% affordable homes, the developer may not actually be able to return a profit. This is a discouragement of capitalism, entrepreneurship and development,” says PPC International Sdn Bhd chief executive officer Siva Shanker.

Negri Sembilan’s new policy, which took effect on June 5, sees affordable houses making up for at least half of the new houses to be built in the state. Out of half of the quota for affordable houses, 15% must be priced below RM80,000 and another 15% below RM250,000. The remaining 20% must be priced below RM400,000.

The developer is free to set the prices for the rest of the new houses. Under the new policy, the bumiputra quota in the state has also been increased to 50% from 30% previously. Negri Sembilan Mentri Besar Datuk Seri Mohamad Hasan was quoted earlier this month as saying that the houses priced below RM80,000 must be landed residential units not smaller than 20 ft by 60 ft. These houses will not be privileged to the bumiputra discount.

Siva: ‘This is a discouragement of capitalism, entrepreneurship and development.

“This is because poverty knows no race … Whoever is qualified to buy this category of houses will buy them at the price fixed by the developers,” he says.

Mohamad says the state increased its bumiputra quota because 70% of residents in Negri Sembilan are Malays and bumiputras.

He said the policy was enforced after discussions with the Negri Sembilan Real Estate and Housing Developers’ Association Malaysia (Rehda).

Pressure on developers
Chang Kim Loong, the honorary secretary-general of the National House Buyers Association, says the policy could also keep developers from entering the Negri Sembilan market.

“Compliance with these new policies may not provide reasonable profits for the developers, and thus, provide more reasons to ‘cut corners’ and construct ‘defective’ houses, shoddy workmanship and using sub-standard materials. This will not benefit the house buyer,” says Chang.

He hopes the policymakers consider the possible implications on the state’s property market. “Even at present times, it is suspected that some developers have unsold bumiputra units and are a drain on the resources of some developers.”

“The end result is that some developers may not want to get into the property development business in Negri Sembilan and this may not be good for the industry or the people or the Government policies. After all, developers are not charitable organisations; they are in for the profits,” Chang says.

Chang: ‘Compliance with these new policies may not provide reasonable profits for the developers.’

Malaysia Vision Valley will be in western Negri Sembilan covering Nilai, Seremban and Port Dickson. The project can be seen as a new growth area, as it provides an alternative for those seeking more affordable housing compared to what one would have to fork out for a property in the Klang Valley.

Whether or not this would mean new highways and infrastructure to improve connectivity to the Kuala Lumpur city centre is yet to be known.

Rehda Negri Sembilan chairlady Jenny Wang says no details on Vision Valley have been conveyed yet, and only knows about the project through the local media.

One big effect from the new housing rules in Negri Sembilan is bumiputra lots.

“It’s a known fact that most developers are struggling to sell their bumi units. If you have to carry them for a number of years, it is going to incur cashflow and interest and the developer is going to project that into his cost and will increase it accordingly,” says Siva.

Chang reiterates that this could result in property developers exiting the Negri Sembilan market in the short-term vision to gain popularity. “It is akin to a small population of the rakyat financing house ownership for the majority,” he says.

To deal with this, the state government will launch a bumiputra housing portal that will list unsold units.

“After this, it is hoped that the developers would no longer complain about the difficulty in selling the bumiputra lots,” Mohamad says.

Wang looks forward to the release mechanism. “With that, if a developer can judge that they really cannot sell to bumi buyers, we can work together,” she says.

The state government or government-linked companies (GLCs) buying up bumiputra units could be something to chew on, Chang adds.

“If the Negri Sembilan state economic agency or their GLCs can absorb it or are seriously conscious of wanting to ensure 50% bumiputra house ownership, then they should buy up those unsold bumi units from the onset rather than ‘dicing’ with the slow mechanism of release of bumiputra units to the non-bumis.”

Market dynamics affected
Siva adds that it is important for the issue of affordable housing and property development to be separated.

“They can’t go hand in hand. Everything can’t be affordable when living costs and building costs have gone up. It comes to a point when affordable means compromising on something, which is either the location or the size or the quality and deliverables,” he says.

This would mean that more affluent buyers of the property are truly subsidising the others. “It’s not fair to ask the rich to pay extra money for their houses so that the poor and middle class can buy another house,” Siva says.

He stresses that capitalism and social responsibility have to be separated. One possible way is to have the more luxurious developments done at a prime location, whereas the more affordable ones are slightly further away and perhaps smaller in size.

“It would be unfair to ask a luxury carmaker like Mercedes or BMW to compel them to produce 50% of the cars they make in the lower price segment. It’s the same if you ask developers to do this,” Siva says.

Affordable housing is a social issue, and hence the individual state governments should get involved and not place the responsibility solely on the developers.

“The developers are in this game to make a profit for their shareholders. If you ask him to compromise his profits for social responsibility, yes, he will do it to some extent, but he isn’t going to like it if you force him to do it every single time,” Siva explains.

Seeing that the policy has been implemented in Negri Sembilan, this may spur other states to follow suit. But Wang says other states would only look at carrying out policies that address their specific needs. Industry experts say the implementation of the policy would not impact the general property market much, as Negri Sembilan is a small state. The total value and transaction is not as big.

“If it was in Selangor, the Klang Valley, Penang and Johor, then we would have something to worry about. It’s not so significant at the moment,” Siva says, referring to the impact on the entire property market.

But the impact would be felt more on the buyers’ perception. “Things like these are very detrimental to perception among the buying public,” he says.

Now that it has been implemented, the fear of it being implemented in other states is there. Siva says while it may be an isolated incident, it is undeniable that everyone out there is saying that it is going to get worse.

For the first time in about three years, the values transacted in the first quarter of 2015 remained the same. Although transactions have been on a downtrend since 2012, values still rose. Siva says the blame can be put on the start of the goods and services tax.

“But I also think perhaps there’s a lot of doom and gloom in the market due to 1Malaysia Development Bhd, the ringgit, and oil prices although it is stabilising now. But these are things that people feel worried about, and the first thing they will do is stop buying.

“They adopt a status quo mentality: wait and see. Although we don’t want prices to go up so high, as it’s not healthy, we want steady growth that is sustainable over the long term,” he says.

The post New state housing policy gets mixed reaction appeared first on Malaysia Premier Property and Real Estate Portal.

BY THEAN LEE CHENG

Risk diversification or loss of confidence?

DESPITE the sliding ringgit and rising property prices, interest in overseas properties among Malaysians continues. Some investors are expected to “reorganise their investment baskets,” according to property consultants.

CH Williams Talhar Wong & Yeo deputy managing director Danny Yeo says as a result of the weak ringgit, he is seeing new clients entering the market and previous ones opting out.

“I am also seeing younger couples who are buying in order to finance their children’s education. By the time the child grows up, the sale of the unit may be able to finance two children’s education because a one-bedroom unit is between £400,000 (RM2.28mil) and £500,000. They reckon that the value of the property will grow in tandem with the cost of living and the tenant will help to pay for it,” he says.

Yeo says if Malaysians are buying off-plan, by the time the property is completed, the concern is that they may not be able to finance the mortgage, at RM7 to a £1 instead of the current RM5.70 or RM5.80. He says a good spread has opted for a ringgit loan as opposed to a sterling pound loan. They will need to analyse their credit risk in view of the recent rout on the market, he says.

A banking source expects prospective buyers to put their decision on hold, or may opt to invest in the local property market. After having aggressively marketed London and Australian properties the last six years, some of the property consultancies have also broadened their focus to include the United States and Japan before the rout on Asian currencies earlier this week. One of them was also embarking on promoting South-East Asian properties, after six years of promoting London residentials.

Although the interest continues, “a lot of people who have money locally are currently strapped,” Knight Frank managing director Sarkunan Subramaniam says. “They have to pay more for the same property,” says Sarkunan, who markets “high-end” properties priced between £800 and £2,000 per sq ft in the UK. The interest in buying abroad started strongly in early 2009, after the 2008 global financial crisis.

The objective of parking surplus funds abroad is two-fold – risk diversification and to house school-going children – real estate personnel concur.

The rout on the currency market and its effect on the ringgit may also result in “a lot of wait-and-see” and “looking around”, says Sarkunan.

If the domestic environment were conducive, they would have “stayed put”, says a source.

Added to the weakening ringgit is the rise in property prices in Britain and the United States, which are expected to surge for the rest of the year. Other destinations of interest include Singapore.

Sarkunan says the interest to buy abroad is unlikely to effect the Malaysian economy negatively as collectively, the amount is “not enough to pose a strain on the economy compared with other issues.”

Strong currency an attraction
Savills KL deputy managing director Paul Khong says investors from all races want a strong currency to house their money and/or investments with capital appreciation in mind.

The risks are always much less in properties, says Khong. “They are hedging their risks. Many are reorganising their investment baskets with more emphasis on overseas properties that can provide an income stream compared with pure forex investments,” he says.

Issues like a free market and stamp duty affect decisions. In December 2014, a minor change to the stamp duty calculation in the UK resulted in stamp duty savings for properties under £937,500. In Singapore and Hong Kong, the stamp duty rates can be as high as 18% and 23% respectively, Sarkunan says.

Singapore was a popular destination due to its close proximity but with the introduction of the Additional Buyer Stamp Duty applicable to foreign investors at 18%, demand has since subsided, says Sarkunan.

The UK is popular with investors because there are no restrictions on selling whereas foreign purchasers can only buy off-the-plan and can re-sell only to local Australians. London, therefore, is a freer market. London, says Sarkunan, is compelling because aside from the international allure, there is a shortage of housing, which in turn, creates a huge rental market.

Sarkunan says a pick-up in population growth in Sydney and Melbourne has coincided with a period of solid house price gains.

Developed world drivers of growth
Seven years after the 2008 global financial crisis, certain western nations may be resuming their role as drivers of international growth, the Financial Times (June 11) says, quoting World Bank. After a sluggish start to the year, “a broad-based slowdown appears to be under way in developing countries,” World Bank says.

Malaysia University of Science and Technology School of Business dean Dr Yeah Kim Leng says emerging countries want to hedge their currencies and economic uncertainties because these affect returns. They want diversification and higher returns, he says.

“Safe havens are safer after a downturn. The recovery will be faster, which gives investors comfort. Their losses will be cyclical. Because of the steady rise in property values, it has given investors that kind of comfort but there are still risks, which have been ‘masked’ by UK’s economic performance and the May 7 election,” says Yeah.

The impending normalisation of US interest rates, which will increase volatility in the emerging markets, is also not helping (the emerging markets). One of the risks is over-valuation.

The questions to ask, says Dr Yeah, is why do emerging markets need to get out of their own currency? In the case of Malaysia, the people are affected by the sharp fall in oil price, the goods and services tax, inflation which had led to currency depreciation and other negative news, he says.

Is it risk diversification or a lost of confidence? And where are these investments being channeled?

“Most Malaysians don’t have that luxury unless they have surplus. Their risk will increase and they have to increase their monitoring. Although the currency has been battered to the previous pegged value of RM3.80, the under valuation will self-correct (in time) but in the short term, it will result and exacerbate the slide,” he says.

Yeah says over the short term, it is bad news but investors with a longer term view will take the opportunity to buy Malaysian assets.

There are opportunities for Malaysians to put their money into foreign currency accounts which will help to stem capital flight. The important thing is – does Malaysia have the capacity to absorb the derailment in the world’s growth?

Will it impede foreign investors in the country? If not, capital outflow will be compounded with capital flight. But statistics does not suggest any of these two fears, says Yeah.

However, Malaysia is going through economic and political uncertainties which will have some bearings on the investment climate.

The post Ringgit in search of new homes appeared first on Malaysia Premier Property and Real Estate Portal.

BY ALAN TONG

The difference between ‘healthy’ and ‘unhealthy’ loans

I have received queries about what household debt means and the best ways to manage it.

Household debt is basically all forms of loans with interest rates taken from entities that provide financing. The loans can be secured with assets such as real estate loans (housing and commercial properties), or without any collateral such as personal and credit card loans.

Residential and commercial property loans have capital appreciation potential over the long term. According to statistics from National Property Information Centre, the annual appreciation rate for house prices has averaged 9% in the past five years.

Even if we assume the average house prices only appreciate 5% per annum, it is still an ideal asset which we can live in, and at the same time it grows in value.

If you refer to the chart above, the effective interest rate for housing loans is only 4.65%, which is lower than its annual appreciation rate. On the other hand, the effective interest rates for car loans range from 5% to 7.5% depending on car model and loan term (effective interest rates are calculated from the advertised headline rates of 2.5% to 3% depending on the tenure of the car loan).

On top of higher effective interest rates, the value of private vehicles depreciate about 10% to 20% per year based on car insurance calculations and accounting practice. In fact, everyone knows that the day you drive the car out of the showroom, its value drops by 15% to 25%!

The effective interest rate for personal loans is 9% to 10%, while credit card effective interest rates can go as high as 18% to 24% (again, like car loans, the effective interest rates per year are much higher than the advertised rates).

If these loans are spent on items that do not appreciate over time and on perishable items, then the depreciation rates are high and there are no returns to speak of. The real estate loans (housing and commercial properties) that will appreciate in the longer term, can be deemed as “good debt”.

Car, personal and credit card loans, which have higher interest rates repayment and do not generate value in the future, and are considered as “unhealthy debt” or “bad debt”.

The chart above illustrates the effective interest rates on different household debt components. It also reminds me about the household debt I shared in my last article. What does our nation’s household debt really mean to us? How much of it impacts us if we include its interest rate, appreciation and depreciation values?

According to Bank Negara, our household debt was at RM940.4bil or 87.9% of gross domestic product (GDP) as of end-2014.

Large burden
Residential housing loans accounted for 45.7% (RM429.7bil) of total debts, hire purchase at 16.6%, personal financing stood at 15.7%, non-residential loan was 7.7%, securities at 6.5%, followed by credit cards and other items at 3.9%.

Our household burden is larger if we include the servicing of incurred interest rate for loans. Much of it comes from the higher interest rates to service hire purchase, personal financing and credit card loans.

It reinforces my belief that if we take a debt to invest or secure appreciating items such as housing and other valuable assets, they will eventually provide a higher return in the longer term which more than compensates for the interest rate paid on the loans.

My belief is substantiated by Bank Negara’s Financial Stability and Payment Systems Report 2014.

The report states that properties remain an important investment for many households to finance children’s education, provide a form of financial security for the next generation and preparation for retirement.

Our government can help us achieve higher investment on housing and other valuable assets by looking at ways to reduce our dependency on other types of loans.

Reducing dependency
Example, to provide a comprehensive public transportation system by aggressively expanding mass rapid transit, buses, mini buses, and taxi service to cover more areas.

This will reduce the dependency on private vehicles which in turn help us to divert our financial resources to more fruitful areas or secure a roof over our heads.

As shared in my previous article, housing loans in advanced countries comprise an average of 74% of total household debt compared with ours at 45.7%.

This tells me that we, as a nation, are spending too much of our already high household debt (87.9% to GDP) on high interest/high depreciation “bad debt” such as a car, credit card and personal loan.

Now is a good time to relook into our debt portfolio and the interest rates incurred, and check whether we are having a healthy or unhealthy debt burden.

FIABCI Asia-Pacific Regional secretariat chairman Datuk Alan Tong has over 50 years of experience in property development. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.

The post Household debt and what it means appeared first on Malaysia Premier Property and Real Estate Portal.

BY MANGALESRI CHANDRASEKARAN
and NURUL ASMUI MD AZMI

Is the property market slowing down? The property fair attracted a large crowd of genuine property seekers who took the time to get more information. Watch video highlights here.

PETALING JAYA: From today’s crowd at the StarProperty.my Fair at Tropicana City Mall, it seemed to suggest that the property market is still very much active. Majority of visitors were genuinely interested in projects displayed and they took the time to find out details. The large crowd of visitors were not merely passing by or “just browsing”.

As such, many prominent brands such as Land & General Bhd, Sime Darby Brunsfield, WCT Land, Hua Yang Bhd and Paramount Property were kept busy throughout the day.

Land & General
Land & General is exhibiting the Astoria project, situated just off Jalan Ampang. The serviced apartments offer five types of layouts: Type A (one bedroom with 560 sq ft built-up), Type B (two bedrooms with 735 sq ft built-up), Type C (two plus one bedrooms with 888 sq ft built-up), Type D (three bedrooms with 1,050 sq ft built-up) and Type E (four bedrooms with 1,505 sq ft).

Developed to provide a nature living amidst a bustling city, Astoria provides a myriad of nature-like facilities including water terraces, wetlands, cascading waterfall, lawn, marshland, timber deck, woodland, grassland, sky bridge, eco trail, Zen garden and eco lounge.

Sime Darby Brunsfield
Sime Darby Brunsfield features two exquisite developments, namely PJ Midtown and The Locus KLCV. The latter development is a new project and is currently open for registration at the fair.

PJ Midtown is an integrated development that comprises two blocks of 30-storey residential towers. The layouts of the residential units are one, two or three bedrooms with built-up ranging between 600 sq ft and 1,200 sq ft. All units will be partially furnished, and there will also be a 25,000 sq ft of facilities area available.

Exhibitors were kept busy throughout the day. Watch video highlights here.

WCT Land
Also at the fair is WCT Land, a well-known developer that is promoting two of their finest projects, Skyz Jelutong Residences and The Azure Residences.

Located at Bukit Jelutong, the Skyz Jelutong Residences offers modern and contemporary homes with three unique layouts. Type A offer two bedrooms and two bathrooms with 813 sq ft built-up, Type B has two bedrooms, two bathrooms and a study area with 1,034 sq ft built-up, meanwhile Type C has two bedrooms, two bathrooms, one study room and one yard with 1,254 sq ft built-up. Further added are a stunning 40-meter vanishing edge pool, serene sky garden, cantilevered cabana and 24-hour hour security.

Being a part of Paradigm’s integrated development, the Azure Residences is among the popular development at the fair. Attached with the Paradigm Mall, this 30-storey dual-use tower consists of residences and New World Petaling Jaya Hotel, separated by the facilities podium. There is a total of 189 units, with built-up ranging from 756 sq ft to 1,815 sq ft.

Hua Yang
Furthermore, Hua Yang Bhd is promoting two high-rise projects at the fair, dubbed Zeta Residence and Cube @ One South. Developed to give the impression of bungalows in the sky, Zeta Residences has 104 units that offer 180 degrees of KLCC view or KL South view. With many comprehensive amenities within the vicinity, this residence is located merely 10 minutes away from the Kuala Lumpur City Centre and 20 minutes away from Kuala Lumpur International Airport.

Meanwhile, Cube is a fully furnished studio SOHO at One South. There is a total of 270 units, with 450 sq ft built-up each. Cube is located close South City Plaza, The Mines, University Putra Malaysia, Segi College, Australian International School and the upcoming Johns Hopkins University.

Paramount Property
Paramount Property offers Sejati Residences in Cyberjaya, Paramount Utropolis in Glenmarie and Sekitar26 Business in Shah Alam. Sejati Residences allocates 50 acres of natural greens aside semi-detached houses, fully-equipped clubhouse, garden of five senses, leisure park and jogging track. This green development offers rainwater harvesting system, energy saving hot water system, and ventilated roofs.

Paramount Utropolis is a SOHO and serviced apartment development with 414 units. This 21-acre university centred metropolis comes with over 120,000 sq ft of ultra-modern retail and dining spaces.

As one of the industrial projects exhibited at the fair, Sekitar26 Business is a matured business hub consists of high-end semi-detached industrial units.

Overseas properties
In addition to the local property developments, two developers, namely Central Equity and Absolute Living UK are showcasing their overseas projects.

Central Equity is promoting the Southbank Central Apartments, which is situated in Melbourne, Australia. Absolute Living UK is exhibiting the Phase B of Orchid Point Apartments in a central location of Manchester. Offering a low-density environment with only 62 units, the price for the apartments range from GBP77,000 to GBP150,000. This gives a chance for the visitors to own a property in United Kingdom (UK) or Australia.

Chance to win prizes
Visitors to the fair can take part in a quick survey to stand a chance to win a Samsung Galaxy Tab 3 Lite or a one-year subscription of The Star ePaper worth RM350. Those who purchased a property at the fair stand a chance to win Senheng cash vouchers worth RM888, RM2888 or RM5888 when they submit their sales order form at the StarProperty.my station.

The StarProperty.my fair ends today at 10pm. For details, log on to fair.starproperty.my.

To watch highlights of StarProperty.my Fair at Tropicana City Mall, click here.

Last call: StarProperty.my Fair ends tomorrow at Tropicana City Mall. Watch video highlights here.

The post Strong crowd at property fair appeared first on Malaysia Premier Property and Real Estate Portal.

BY VIJENTHI NAIR

Natural umbrella: Standard Chartered Bank (M) planted over 120 mature trees (in the background) to create a natural canopy of green and a cool zone from the heat in Jalan P.Ramlee. Photo: M. AZHAR ARIF

KUALA Lumpur City Hall (DBKL) is struggling to maintain public parks in the city with its limited budget.

Many of the amenities and facilities at these parks have been damaged by vandals and the homeless.

DBKL Landscape and Recreation Department director Puteri Khairul Fathiah Fahimudin said they are given a yearly allocation of RM14mil to maintain parks and another RM35mil for upgrading works.

The are currently 17 large public parks in the city and about 20 pocket parks.

“We want more private companies to adopt parks under their corporate social responsibility (CSR) programmes.

Eco World Development is planting 227 trees at its adopted park in Jalan Ipoh.

“The companies can sign a contract to maintain the park for a set number of years which may be extended. We have approached several companies and so far, five have shown strong interest.

“When the responsibility of maintaining the parks is shared, everyone gains,” Puteri said.

One success story is Standard Chartered Bank (M) Sdn Bhd’s adoption of a pocket park in Jalan P. Ramlee in 2012.

It was renamed “Laman Standard Chartered Kuala Lumpur”.

“The bank has been doing a great job of maintaining the park.

“It signed a five-year deal with DBKL and this may be extended by another two years if both parties agree,” she said.

City Hall has also explored other ways to get companies to help maintain public parks and spaces.

Tasik Sri Murni’s retention pond is no longer dirty and smelly after it was upgraded by JL99 development. It will also feature a bird island. -Photos: M. AZHAR ARIF

Two developers in the city, JL99 Development Sdn Bhd and Eco World Development Sdn Bhd, had to upgrade parks near their project sites included in their development order.

JL99’s Lake Park Residence @ KL North project upgraded the 13.3ha area including the Tasik Seri Murni retention pond, off Jalan Ipoh.

The developer is revitalising the recreational landmark by adding attractions like a cantilever deck, jogging track, boardwalk, outdoor gym, look-out point, mega tree sculptures, and pontoon jetty.

It will also feature a bird island with more than 300 birds including ostriches, swans, peacocks, and ducks.

The park which is expected to open by the end of the year, would also have security guards on duty around the clock, as well as closed-circuit television cameras.

Meanwhile, Eco World Development is in the midst of putting the finishing touches to the 1.1ha park in Jalan Ipoh, next to its Ecosky project.

Veritas Design Group saw the potential of sprucing up this small park where tourists are often seen taking photos with the Petronas Twin Towers as the background.

StarMetro had reported earlier that the upgrading works cost RM1mil and the park would have a canopy walk, jogging track, exercise equipment and landscaping, with an additional 227 trees planted.

Once open, the park will not only benefit residents in Ecosky, but also those living in Taman Wahyu and Taman Mastiara, including the PPR Taman Wahyu.

Veritas Design Group has also adopted the pocket park near its office in KLCC.

Veritas Design president and chief executive officer David Mizan Hashim said the 0.4ha park located at the Jalan Ampang/Jalan P.Ramlee junction only had a few plants before.

“We have spent RM50,000 to landscape the area.

“The park now features a variety of plants and sculptures that are photo-friendly.

“There is also a path so that people can go inside the park for photo opportunities,” he said.

All Arab-themed decorations at the Arab Square in Bukit Bintang will be removed once Hap Seng Land Sdn Bhd adopts the park. It will feature more plants, benches and a walkway, among others.

Puteri said Hap Seng Land Sdn Bhd would be adopting the 0.18ha Ain Arabia or Arab Square near Jalan Berangan/Jalan Beremi junction in Bukit Bintang which has become an eyesore.

“We will get rid of the gazebos to prevent vagrants from sleeping there. The Arab-themed decorations will be removed and more greenery and plants added.

“More benches will be built and a walking path will be constructed too,” she said.

Puteri is pushing for more private companies to adopt parks in the city.

Puteri added that Pan Asia Sdn Bhd has also shown interest in adopting a 0.18ha pocket park in Jalan Imbi, Bukit Bintang.

The Kuala Lumpur Festival City mall in Setapak is in talks with DBKL to upgrade the 13.3ha Taman Danau Kota.

“There is a row of restaurants on the ground floor of the mall facing the lake.

“The management plans to introduce al-fresco style dining overlooking the lake,” she said.

DBKL is also identifying small open spaces with potential to be developed into pocket parks.

“We also need help to upkeep the 408 playgrounds under our care.

“We hope more residents associations will adopt parks in their neighbourhoods.

“We will assist them in managing the parks,” she said.

The post DBKL urges private sector to adopt city’s green spaces appeared first on Malaysia Premier Property and Real Estate Portal.

BY IZWAN IDRIS

In his speech at the opening ceremony, Jokowi pledged to speed up project awards and implementation as Indonesia sought to attract fresh foreign investment into the country’s infrastructure sector. He commended the highway concessionaire for finishing the project in just two-and-a-half years.

JAKARTA: UEM Group Bhd, the construction arm of Khazanah Nasional Bhd, plans to expand its highway concession business in Indonesia after winning President Joko “Jokowi” Widodo approval for completing the country’s longest toll road project ahead of schedule.

The 116.8km Cikopo-Palimanan stretch (pic) was open to traffic at midnight on Sunday. PT Lintas Marga Sedaya, in which UEM Group has 55% stake, is the concession holder for 35 years.

The RM3.53bil project was awarded in 2006, but it took more than six years to complete land acquisitions and the required approvals before construction works started in 2013.

In his speech at the opening ceremony, Jokowi pledged to speed up project awards and implementation as Indonesia sought to attract fresh foreign investment into the country’s infrastructure sector.

He commended the highway concessionaire for finishing the project in just two-and-a-half years.

“The UEM group is looking at various opportunities in Indonesia,” Lintas Marga’s president director Datuk Roslan Ibrahim told a group of Malaysian reporters after the ceremony.

“We have done some studies here and are very keen to participate in some of these projects,” he added.

Roslan, who will be appointed chief operating officer of UEM Sunrise Bhd in September, said the group would focus its overseas expansion strategy on four key areas namely expressways, engineering and construction projects, township and property development, as well as asset and facility management contracts.

The Cikopo-Palimanan toll road is UEM group’s first highway concession in Indonesia.

It also made the company Indonesia’s second largest highway concessionaire behind state- owned PT Jasa Marga.

Described as the missing link in the Trans-Jawa, the Cikopo-Palimanan highway project connects Jakarta to Cerebon in the western part of the Jawa island.

Initial estimate put daily average traffic volume on the highway at 26,000 vehicle a day.

The project is the biggest construction job under taken by a Malaysian-Indonesia joint venture company and comes under the private public partnership programme.

Indonesia’s Finance Minister Bambang Brodjonegoro said in March that country needed an estimated 5,000 trillion rupiah (US$400bil) over the next five years to build new roads, seaports and power plants.

The bulk of this new investment would have to come from overseas.

There are at least 35 different toll roads in Indonesia, mostly concentrated in the main island of Jawa. Only a-fifth of these toll road are longer than 30km.

The post UEM eyes more highway jobs in Indonesia appeared first on Malaysia Premier Property and Real Estate Portal.

BY YVONNE T. NATHAN

Abandoned chalets and Tudor-styled bungalows on the picturesque hills. –filepic

A PROPOSED facelift for Fraser’s Hill will cost between RM100mil and RM200mil over a 10-year period.

Pahang Arts, Tourism and Culture Committee chairman Datuk Seri Mohd Sharkar Shamsuddin said several facility and service upgrading works had been proposed under a 10-year plan to enhance and improve facilities and new areas in the quaint township.

“After negative experiences in Cameron Highlands and Genting Highlands, large-scale development projects were prohibited on Fraser’s Hill.

“Unlike Genting Highlands and Cameron Highlands, Fraser’s Hill is not a centre for entertainment but rather a place for people to retreat from the hustle and bustle of city life.

“People go to Fraser’s Hill because they want to experience the beauty of nature and our plans for the hill will preserve the charm of the area,” he said.

Although no new developments projects would be allowed, Mohd Sharkar acknowledged that something needed to be done to revitalise the sleepy town.

“The hill needs a new injection of life through controlled development and by playing on its historical strengths as a Little England,” he said.

Mohd Sharkar reaffirms state’s commitment to develop Fraser’s Hill.

Mohd Sharkar added that any improvement would need to be done carefully, over time, so as to not damage the hill’s delicate ecosystem.

Last month, StarMetro, in its report, “Going downhill fast”, had highlighted residents’ concerns that Fraser’s Hill was in decline as a hub for tourists. Issues raised included poor maintenance of the buildings, roads and attractions.

Pahang Tourism Agency (formerly Fraser’s Hill Development Corporation) general manager Datuk Ishak Mokhtar said the hill was under the care of three stakeholders.

“The state government has broadened our responsibility to not only oversee Fraser’s Hill, but also tourism in Pahang as a whole.

“The Public Works Department is responsible for the roads while maintenance of the township lies with the Raub District Council.

“But Selangor and Pahang need to work together because the hill straddles the borders of both states.

“For example, the Gap at the foot of Fraser’s Hill is Selangor’s responsibility,” said Ishak.

In the Ninth Malaysia Plan, the Government spent more than RM20mil on upgrading works to Fraser’s Hill’s attractions, ranging from its jungle trails and paddock to a new bird centre.

Quaint scene: The little clock tower in Fraser’s Hill’s town centre is surrounded by Tudor and old English-style buildings. Unfortunately much of the roads leading to the hill station are in a state of disrepair and many of its buildings lie abandoned. — Photo by SAM THAM

“We are looking at promoting Fraser’s Hill to a niche market as a nature retreat and research station,” said Mohd Sharkar.

In addition to renovating the golf course, there are plans to reconstruct the facades of old buildings as well as bring the English Garden to life again.

Other proposals include setting up a museum with a collection of British memorabilia.

The walkways around the Botanical Gardens will be paved with cobblestones while a deer and sheep farm will also be set up.

There are also plans to offer basic facilities for research, including a herbarium to study indigenous flora and fauna as well as an automatic weather laboratory station.

Also in the pipeline is the building of a medical clinic at the Temerloh Bungalow, said Ishak, adding that there was currently no doctor stationed at the hill.

There are also plans to have a public transportation depot, including introducing shuttle service from the Gap as well as the construction of a cable car system.

The hill will also have modern conveniences such as telephones and Internet connection.

Mohd Sharkar reaffirmed the state government’s commitment to develop Fraser’s Hill while preserving its unique nature.

“Improvements will be made gradually.

“We will also be applying for heritage status for the hill,” he said, in calling on support from the private sector to help redevelop the area.

With such detailed and well-thought out plans, it looks like things are finally looking up for the picturesque township.

The post Bright future for Fraser’s Hill appeared first on Malaysia Premier Property and Real Estate Portal.

BY SHALINI RAVINDRAN

For a smooth drive: Tengku Adnan (second from left) flagging off the mayor’s car and several other cars to mark the official launch of the new access road.

KAMPUNG Kerinchi residents can now use a new access road to enter and exit Bangsar South.

The new 800m road will connect Jalan Kerinchi Kiri to the Kerinchi Link on Sprint Highway and the Federal Highway.

This will allow motorists to bypass heavy traffic at the intersection of Jalan Kerinchi and Jalan Pantai Baru.

The RM20.3mil road is a joint venture between Kuala Lumpur City Hall (DBKL) and several developers in the area.

The project began in November 2013 and was completed on May 4.

“Kampung Kerinchi has grown rapidly over the past few years especially as more residential units have been built.

“This has brought more traffic into the area which the old roads could no longer support.

“Hopefully the new road will help alleviate traffic congestion,” said Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor during the launch.

He added the completion was timely as several residential and commercial development projects are located within the vicinity.

The cost of the project was shared by developers UOA Properties Sdn Bhd, Suez Domain Sdn Bhd, EUPE Bangsar South Development Sdn Bhd and Kar Sin Bhd. The project involved the building of a flyover from Jalan Kerinchi Kiri to the Kerinchi Link, widening of Jalan Kerinchi Kiri from two to four lanes, drainage work and a retaining wall.

Also present were Kuala Lumpur mayor Tan Sri Ahmad Phesal Talib, Federal Territories Ministry secretary-general Datuk Seri Adnan Md Ikhsan, DBKL director-general Datuk Amin Nordin Abdul Aziz and Lembah Pantai Umno chief Datuk Raja Nong Chik Raja Zainal Abidin.

Kampung Kerinchi resident Mohd Zain Ibrahim, 43, is looking forward to using the road.

“The jam used to occur during off-peak times too.

“Now I can connect to the Federal Highway without having to go through Jalan Kerinchi,” he said.

The post New road in Kerinchi to ease traffic jam appeared first on Malaysia Premier Property and Real Estate Portal.

BY VINCENT TAN

Tee (front, third from left) and Calvin Klein Furniture president-chief executive officer Michael Foster (third from right) holding up the signed partnership agreements for furnishing Opus KL. With them (from left) Star effort director Ng Keong Wee, Dr Tan, Wong, Foong and Choo.

BINA Puri Holdings aims to raise the bar on high-end condo living in Kuala Lumpur.

The company’s flagship project, Opus Kuala Lumpur, will have all 357 units in its two residential towers furnished by Calvin Klein Furniture and Gorenje, a Slovenia-based kitchen appliance supplier.

An agreement to that effect was signed by the head of Bina Puri’s property subsidiary Star Effort Sdn Bhd Matthew Tee.

The signing ceremony was witnessed by Bina Puri Holdings chairman Tan Sri Wong Foon Meng, founder and director Dr Tony Tan and Bina Puri Properties’ chairman Tan Sri James Foong Chen Yuen.

Located opposite the upcoming 118-storey KL 118 tower, also known as Menara Wawasan in the Jalan Maharaja Lela area, Tee and his partners envision Opus becoming part of a new “epicentre” in KL’s real estate development.

“It will be like KLCC, Pavilion in Bukit Bintang or KL Sentral,” said Tee.

There is a plan for Opus to be connected to KL 118 by a pedestrian walkway, while its proximity to the Hang Tuah monorail station is another plus point.

Tee also touted the development’s price competitiveness, stating that at RM1,500 to RM1,600 per square foot, it is almost 30% lower than property prices in the vicinity of other KL landmarks.

Unit sizes for the freehold development range from 700 to 1,100 sq ft (65-102.1 sq m), with a gross development value of RM334mil.

Tee also said they were delighted to tie up with international luxury brands as their design partners.

Tee (pointing) explaining the layout and facilities for the two-tower opus KL residence to Bina Puri chairman Tan Sri Wong Foon Meng after the partnership signing ceremony at Grand Hyatt.

Calvin Klein Furniture was brought into the project through luxury furnishing retailer Felione Fine Furnishing’s executive director Lionel Choo.

Its president and chief executive officer Michael Foster, who flew in from the United States, added that the furnishing supplied was environmentally friendly.

“We use wood for our furniture from certified sustainable sources and recycled materials,” said Foster.

Similarly, Gorenje’s regional sales manager Janko Le Ulaga added their appliances were compliant with European standards.

“Europe has one of the strictest energy ratings for electrical and electronic appliances. All our appliances are rated energy and water efficient,” said Le Ulaga.

Project work on Opus has already started, with German piling contractor Bauer, headed by its Malaysia managing director Thomas Domanski saying they were ahead of schedule.

“We expect to finish the project a few weeks earlier,” said Domanski.

During the signing ceremony at the Grand Hyatt ballroom, Dave Hoong, managing director of Opus KL’s exclusive marketing agent Goldmine Properties demonstrated a new app designed specifically for the project,

He demonstrated how the Opus Kuala Lumpur app user could monitor the progress of the construction, as well as check out the interior and various layouts.

“The Android version is out while the Apple version will be ready in a couple of weeks,” he added.

The post Condo coming up in city centre to have eco-friendly furniture and appliances appeared first on Malaysia Premier Property and Real Estate Portal.

THE Penang government may revise present guidelines for foreigners buying property in the state in view of the declining value of the ringgit.

State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said he would meet with stakeholders next week to discuss the guidelines which restrict foreigners from buying landed homes of not more than RM2mil on the island and RM1mil on the mainland.

“We’re concerned about the spiralling property prices which have been compounded by foreigners snapping up homes due to a weaker ringgit,” he said after closing the Property and Investment Expo at Sunway Carnival Convention Centre in Seberang Jaya yesterday.

Jagdeep said there had been a steady increase of foreigners buying property in Penang since 2012.

“A RM1mil home may cost only US$250,000 now which is an attractive purchase for foreigners.

“If the value of ringgit declines further, the property market will get extremely hot,” he said.

“While we believe in the free market and encourage foreigners to buy property here, it must not be at the expense of the locals who will not be able to buy property in their home state if the prices continue to increase,” he added.

Jagdeep said the rise in property prices affected mainly the high-end units as the government was controlling the prices of the low-cost and low medium-cost units to enable the locals to buy them.

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BY KATHLEEN ANN KILI

New homes: Goldman (left) and assistant manager Lee Peck Hong (right) showing an information booklet on the Raintree housing project at Indahpura.

KULAIJAYA: Genting Property has ventured into developing high-end residential areas in Taman Indahpura here to cater to the demands of the local community.

Its senior manager Beverly Goldman said the new Raintree project would see a mix development of cluster, semi-detached, link-bungalow and bungalow homes centred in lush greenery.

“All these while, our bread and butter were from developments of single and double storey homes here in Taman Indahpura, but this time we decided to take a different approach following demands for posh residency.

“We launched the first phase of the Raintree project, which includes 52 units of all types with a gross development value of close to RM68mil,” he said at the official launch of Raintree residential project.

Goldman added that the two-storey and two-and-a-half storey modern houses would see a built-up area of between 2,875 sq ft and 4,522 sq ft priced from approximately RM1mil to RM3mil.

“Our focus is to create living space surrounding greenery with a breezy environment,” he said, adding that the development was also strategically located near the main road, the district’s police headquarters as well as shopping centres.

He said that security provided would also be top notch, as the gated and guarded property would be surrounded by seven to eight feet high walls installed along with electrical fencing, which would be first-of-its-kind here.

“Although the industry has been facing a slow business, we forecast that things will pick up in the next six months.

“As for our Raintree project, we have been receiving good feedback, recording over 20% take up rate for its first phase,” he added.

Goldman also said that the company was also looking into constructing affordable homes with an average built up area of 2,000sq ft, in the district by next year.

He added that Genting possessed a total land bank area of about 2832.80ha and over 809.37ha of it had been developed including 6.88ha allocated for the Raintree project.

The post Developer launches high-end double-storey homes appeared first on Malaysia Premier Property and Real Estate Portal.

Artist’s impression of the Sunway Iskandar masterplan which details where each aspect of the development will fall into place.

ISKANDAR: Pre-fabricated homes are a rare sight in Malaysia, but all that is set to change with the recent joint venture between Daiwa House Malaysia Sdn Bhd and Sunway Iskandar Sdn Bhd. Daiwa House plans to alter the public’s perception by developing 100 units of high quality pre-fabricated landed homes, located strategically within Sunway Iskandar’s Lakeview Precinct.

Sited on a 13-acre plot that Sunway Iskandar transferred to the joint venture company, this project will be adjacent to the pristine 20-acre Emerald Lake. The parcel of land is to be 70% owned by Daiwa House and 30% by Sunway Iskandar with a financial consideration of RM63 million for the development of the homes.

The term ‘pre-fabricated’ refers to the process of manufacturing of houses or housing components offsite in a factory environment before final installation onsite. These pre-fabricated housing technologies enable for faster construction and delivery to customers, in addition to consistent product quality and enhanced liveability.

Using cutting-edge technologies, the project will consist of bungalows, semi-detached and cluster homes, all safely ensconced in a gated and guarded community. To further enhance the living conditions of its future residents, there will be amenities provided such as a clubhouse, swimming pool, gymnasium, multi-purpose hall, childcare centre and prayer facilities.

The project has a gross development value (GDV) of RM210 million and is expected to launch in early 2016, with the handover to customers estimated for mid-2017. Potential homebuyers stand to benefit from the strategic location of this project as Sunway Iskandar is also known as “Nature’s Capital City”.

Apart from the lush greenery surrounding Sunway Iskandar, it is located within the heart of Iskandar Malaysia, and is approximately five minutes away from Singapore via the Second Link Expressway. It is also 25 minutes from Senai International Airport and is surrounded by Iskandar Malaysia’s catalytic developments including Legoland Malaysia, Pinewood Iskandar Malaysia Studios, EduCity, Kota Iskandar and the International Financial District.

According to Sunway Property managing director Sarena Cheah, “This strategic collaboration is in line with Sunway’s vision to integrate world-class liveability in Sunway Iskandar. With Daiwa House’s world-recognised expertise in pre-fabricated technologies, we hope to expand the pre-fabricated housing technologies in Malaysia and to deliver high quality products to our homebuyers in Sunway Iskandar.”

As a subsidiary of Japan’s largest pre-fabricated homebuilder and Fortune Global 500 company, Daiwa House Industry Co. Ltd., Daiwa is a pioneer in prefabricated housing in Japan and has been producing more than 550,000 prefabricated homes since 1959.

Prior to this, Daiwa has completed a prefabricated house prototype in Sunway Eastwood, Selangor, since the middle of last year. The 3-storey bungalow prototype, with a built-up area of 3,968 sq. ft., was completed from ground up within a short 5 months, utilising local suppliers and contractors.

“The homes in Sunway Iskandar will incorporate cutting-edge design features, tapping into Daiwa’s experience in Japan and R&D strengths, such as child-friendly door designs, home energy management systems, as well as game-changing lifestyles for the communities of Sunway Iskandar,” said Daiwa House Malaysia managing director Daisuke Usugi.

The post Joint venture brings cutting edge technology to Malaysia appeared first on Malaysia Premier Property and Real Estate Portal.

THOSE with a monthly household income of RM2,000 and below paid RM51.89 per month – or 2.59% of their earnings – under the Goods and Services Tax (GST) implemented from April 1, said the Finance Ministry.

Under the previous Sales and Service Tax (SST), they only paid RM36.83 or 1.84% of their monthly earnings.

Finance Minister Datuk Seri Najib Tun Razak said the study also showed that those earning RM8,000 paid RM290 – 4.14% of their monthly income – under the GST as compared to RM168 (2.8%) previously.

“Based on this study, it is not true to assume that the lower income group is paying more than those in the high income bracket once the GST came into place.

“In fact, those in the high income group will pay more as they spend more on goods and services im­posed with GST. This shows that the GST model is progressive in nature,” he said in a reply to Oscar Ling Chai Yew (DAP-Sibu).

However, Najib said the country’s inflation rate was expected to rise between 2% and 3% this year, adding that the Government was focusing its attention on the rising cost of living.

“In April this year, the Consumer Price Index (CPI) saw a 1.8% rise after GST compared to 0.8% the previous month. However, this rate is still under control and not all items in the basket of goods have shown a drastic increase,” he said.

In another reply to Datuk Mohd Zaim Abu Hasan (BN-Parit), Najib said Malaysia was considered a na­tion with manageable and moderate debts totalling RM596.8bil or 51% of the Gross Domestic Product (GDP).

Almost all – 97% or RM579.2bil – he said, was domestic debt while the rest, RM17.6bil, was foreign debt.

“The debts are mostly Govern­ment bonds issued domestically, 72.4% of which are held by major institutions while 27.6% are held by foreign investors,” he said.

The Government, said Najib, was committed to ensure the debt level did not go above 55% of the GDP.

He also told Datuk Wan Mohd Khair-Il Anuat Wan Ahmad (BN-Kuala Kangsar) that Bank Negara had placed 171 companies under its watch list for involvement in get-rich-quick schemes since 2000 and uploaded this onto its website.

“Between 2000 and last year, 66 companies and individuals were investigated for offences related to illegal deposit taking,” he said.

The post Affluent households paying more towards GST appeared first on Malaysia Premier Property and Real Estate Portal.

BY MARTIN CARVALHO, YUEN MEIKENG, RAHIMY RAHIM, RAHMAH GHAZALI, AND TAN YI LIANG

SEVERAL Bills were tabled for first reading, including a proposed amendment to the Electricity Supply Act which could see domestic users being fined up to RM1mil for stealing electricity and meter tampering.

Under Clause 28 of the Electricity Supply (Amendment) Bill, non-domestic users found guilty of such offences might also be forking out up to a whopping RM5mil fine.

Previously, both domestic and non-domestic users face the same punishment, which is a maximum fine of RM100,000 or up to a jail term of three years or both.

Under this Bill, in addition to the fines, both may now be jailed for up to 10 years or both.

Repeat offenders among domestic users could face up to a RM100,000 fine or three years jail.

The Bill will increase the penalties for those whose negligence du­­ring the installation or provision of equipment cause harm to another or damage property, with the fines raised from RM50,000 to RM100,000 and a jail time of five years.

Under the Civil Aviation (Amend­ment) Bill, firms providing airport and aviation services face heftier fines for breaching their licence conditions, from RM100,000 to RM500,000.

The Bill, which was tabled for first reading by Transport Minister Datuk Seri Liow Tiong Lai, also gives Civil Aviation Department officers carrying out enforcement, inspection and investigation to be vested with the same powers as provided to the police under the Criminal Procedure Code. However, they will not have the power to make arrests without warrant.

Anyone failing to comply or gi­­ving false or misleading information, evidence or documents under an order by an enforcement officer can be fined up to RM500,000, jailed three years or both.

The Bill also makes it an offence to tip off others about a probe, which can see a fine of up to RM3mil or five years in jail or both.

Among others, the Bill seeks to widen the definition of aerodromes and airports to include facilities, roads and car parks.

Dewan Rakyat also saw three other proposed laws – the Judges’ Remuneration (Amendment) Bill, the Armed Forces (Amendment) Bill and the Police (Amendment) Bill – which will see the pension of judges and army personnel and the salaries of police officers transferred to pay for their housing debts under the Public Sector Home Financing Board.

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BY JACK WONG

Chew: ‘We have planned a high-rise commercial and residential development there.’

KUCHING: Property developer Ibraco Bhd is spreading its wings to Peninsular Malaysia with a planned maiden mixed commercial cum residential project in a strategic area in Kuala Lumpur.

Managing director Chew Chiaw Han said the proposed development would be on a piece of vacant land which Ibraco was expected to acquire in two weeks.

Under a sales and purchase agreement inked in March 2015, Ibraco will pay RM55mil in cash to Bandar Park Sdn Bhd for the 5,825 sq m freehold land, which fronts Jalan Tun Razak and Jalan Loke Yew.

“We have planned a high-rise commercial and residential development there,” Chew told StarBiz, adding that details were being worked out.The company targets to kickstart the project later this year.

Ibraco has budgeted RM19.55mil from part of the proceeds of the company’s proposed renounceable rights issue to finance the project.

The proposed rights issue involves the issuance of some 50.65 million new shares priced at RM1 each on the basis of two rights shares for every five existing shares. Ibraco closed at RM2.03 on Friday against its 52-week high of RM2.06.

The fund raising exercise is expected to raise RM50.65mil,of which RM30mil would be utilised to pare down Ibraco group’s bank borrowings of RM100.3mil.

Bursa Malaysia approved last week the listing and quotation for the rights shares.The exercise is expected to be completed in the third quarter of 2015.

Ibraco, the city’s largest developer which has built and sold more than 10,000 residential and commercial properties here, ventured into Bintulu three years ago with an integrated mixed development project named “Bintulu Town Square” with a gross development value (GDV) of over RM600mil.

The project, which is undertaken with joint-venture partner – Bintulu Development Authority – involved 74 three-storey shophouses and one block of shops in phase 1.

Phase 2 to be launched soon would comprise 200 medium-cost apartments, high-rise condominium units, a mall, shophouses and other components.

According to Chew, Ibraco’s flagship development – Tabuan Tranquility – along Kuching-Samarahan Expressway, is progressing into the tail-end of its five year development plan. Out of the total 70ha, some 60ha has been or is being developed for residential and commercial properties.

He said the final phase would comprise double-storey terraced houses and detached lots as well as 100 commercial properties.

Chew said this integrated development with GDV of RM520mil had locked in unbilled sales of some RM224mil. The Tabuan Tranquility was instrumental in “rescuing” Ibraco from its Practice 17 (P17) status. Riding on the success of Tabuan Tranquility, Ibraco will next develop 49.8ha in Greater Tabuan area for offices, SOHOs, apartments, retail outlets and shop offices.

Ibraco’s another on-giong project – Stutong Heights – offers 497 apartment units, out of which some 85% have been taken up, recording unbilled sales of RM77mil.

The post Ibraco spreads wings to peninsular Malaysia, plans mixed projects in KL appeared first on Malaysia Premier Property and Real Estate Portal.

Major shopping theme park development officially launched

All in one: Mohamed Nazri (sixth from left) looking at a model of The TWO development after its official launch in Kuala Lumpur.

IN LINE with the Malaysian Tourism Transformation Plan’s target of 36 million tourist arrivals and receipts of RM168bil in 2020, Tourism and Culture Minister Datuk Seri Mohamed Nazri Abdul Aziz, officially launched The TWO integrated commercial development in a ceremony in Kuala Lumpur.

Mohamed Nazri said the RM5bil theme park, wholesale city and outlet mall on 20.64ha is the only integrated lifestyle project in Selangor that met stringent Economic Transformation Programme application processes. The project will be developed by DA Land Sdn Bhd.

DA Land chairman Tan Sri Mohd Radzi Sheikh Ahmad and chief executive officer Derek Chew said the company had been selected to be involved in the ambitious plan.

DA Land chief operating officer Sip Mun Yee, who also sits in the Economic Transformation Programme steering committee said, “We at DA Land undertake this responsibility as a national mission to progressively work together to achieve this long-term target that is going to create employment, drive economic growth and further enhance the Asean Economic Community on top of creating a major landmark in Rawang for locals as well as a vibrant tourist attraction hub within the Asean region.”

DA Land’s immediate attention is to accelerate the early phases of the project. This includes a multi-purpose hall to be called the Arena of Fames.

The venue that is being built to meet international standards and specifications for performing artistes and conventions, will have a seating capacity for over 8,500 people.

Once ready, it is expected to host shows, events and convention-themed events. Chew said the hall would help in promoting Malaysia to tourists and a destination of “Endless Celebrations” filled with festivals.

The site for the larger project straddles the the North South Expressway. An overhead bridge will link both sides of the development, which will be accessible via the North South Expressway, Guthrie Corridor, and KL-Kuala Selangor Expressway.

The site is also 15 minutes from population centres such as Petaling Jaya, Damansara, Subang, Shah Alam, and Kuala Lumpur.

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BY MELIZARANI T. SELVA

Suitable for big families: A model structure of Lambaian Residences semi-detached units. The 56 units on 26.3ha of land is set to be completed in December this year. -Photo: SAMUEL ONG

HEARTS are happier when occupying a comfortable home.

Designed by Anvil Development Sdn Bhd as an escape from the hustle and bustle of the city, the new Lambaian Residences development in Taman Universiti, Bangi, boasts luxurious bungalow and semi-detached units cradled by the green landscape of Kajang, Selangor.

Anvil Group managing director Kevin Tew Boon Chin said the 56 units built on 26.3ha of land would be completed in December this year.

“All six of our bungalow units in the first phase have been sold.

“That is why we are opening this second phase of units earlier than planned,” he said at the official launch of the new phase.

Tew added that all units, comprising 24 units of semi-detached houses in two layouts, and six bungalows units, were being built with nature as a leading component of the design.

“We made sure not to cut a lot of the hill as we want to maintain the natural landscape.

“Nature complements the houses’ looks and makes the homes more ideal for relaxation.

“All the units are also gated and guarded, making it a safe place to call home,” he said, adding that the 30-year-old company aimed at introducing its own branding in the local luxury property segment.

The new phase of the development was officially launched by Tengku Panglima DiRaja Selangor Tengku Sulaiman Shah Sultan Salahuddin Abdul Aziz Shah. Tenku Sulaiman commended the property developer for its commitment to quality design.

“The design of homes should be aligned with the human senses.

“People do not just buy a house for the way it looks but for its added features like security.

Featuring spacious interior spaces, each three-storey semi-detached unit of Lambaian Residence features four bedrooms, one master bedroom and a study.

Lambaian Residence project architect S.Y. Tham said the semi-detached units had proven popular with buyers.

“These units are designed according to market trends and preference.

“Its also more comfortable for big families.

“Compared to terrace houses, the semi-detached houses like these are designed to have more ventilation and light as they do not have a fixed wall between each unit,” he explained.

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