IJM LAND Berhad has sponsored RM7,500 in support of the much-anticipated inaugural FitForLife Penang 2015 Fun Run.

IJM Land corporate communications executive Amelia Lim said the company was aiming to engage the community through sports and fitness initiatives.

“The four pillars of our corporate social responsibility are arts and culture, environment, sports and community.

“We are honoured to be able to reach out to the participants through this contribution.

“The company believes in creating a balance between work, life, play and exercise.

“We aim to play a role in educating the community and boosting their health and wellness,” she said during a mock cheque presentation at the Star Northern Hub in Bayan Lepas yesterday.

Star Media Group finance and administration assistant manager Michelle Tang received the mock cheque and thanked all the sponsors who had stepped in to make the event a success.

“With the support of the community, we hope to make the fun run an annual event,” she added.

The 7km run will be flagged off at the SPICE Arena in Relau at 7.30am on Sunday.

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BY KATHLEEN MICHAEL

AFTER managing Pangsapuri Section 16, Bandar Baru Bangi, and caring for its residents for 30 years, the Selangor State Development Corporation (PKNS) has handed over the task to the residents.

This year, residents of the low-cost apartment facing Jalan 6C/11 formed a management corporation, taking a more responsible role towards caring for themselves and their home.

By forming a management corporation, the low-cost apartments will now be under the responsibility of the Commissioner of Buildings of the Kajang Municipal Council (MPKj).

PKNS public relations manager Ishak Hashim said before the handover, they spent two months to upgrade some of the facilities of the low-cost apartments.

“Among the facilities that were upgraded are the courts for badminton, sepak takraw, handball, netball, and a playground with benches was installed.

“New trees were planted and pedestrian walkways were also upgraded,” he said.

In total, PKNS spent RM400,000 on the upgrades spread across eight open areas shared by residents from 24 blocks.

As early as 8.30am on Oct 10, residents, council members and PKNS staff had breakfast together at the carpark area of the low-cost apartments before the handover ceremony.

The handover ended with a gotong-royong with residents and MPKj officers who pruned trees, collected bulk waste and cleared drains of dried leaves and rubbish.

Pangsapuri Section 16 management corporation head Shmain Lagiman, 60, was glad that the blocks of apartments were now cleaner and more organised.

He said there were close to a thousand families living there, who now have better facilities for recreational activities.

“We are very thankful for this and as residents, we will work together to ensure that our surroundings and facilities are in good condition,” he said.

PKNS will embark on a new project next year, to upgrade the facilities of Pangsapuri Section 1, 2 and 3 in Bandar Baru Bangi before the low-cost apartment is handed over to the council.

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BY VINCENT TAN

THE buyers of the abandoned Block E Petaling Utama low-cost flats project in PJS 1 will finally get their homes – after a long 11-year wait.

The 276 affected people will get new units at the neighbouring Block F to be built by developer Peter Brickworks Sdn Bhd.

The Block E project was stalled due to a court-issued stop-work order with only piling works in progress then.

The buyers were housed at 27 longhouse units near the abandoned project, while still servicing their housing loans.

The decision to give the buyers housing at Block F was made in a Selangor state executive council meeting in June.

In a press conference at the State Secretariat Building in Shah Alam, Parti Sosialis Malaysia treasurer Sivarajan Arumugam said the Petaling Jaya City Council (MBPJ) had approved for Block F’s development plans which were 12 floors of 276 units, a surau, a hall, and seven shoplots.

Block E Housebuyers’ Action Committee chairman M. Sugumaran and a few housebuyers met with Mentri Besar Azmin Ali’s private secretary Datuk Mohamad Yasid Bidin to explain issues concerning the new Block F project.

Sugumaran said one of them included forwarding a revised list of housebuyers and other eligible residents, to the Selangor Housing and Property Board (LPHS).

The list, he said, was expected to be completed by end of this month and should be compared against the city council and developers’ name lists to ensure no one was left out, and that no outsiders could take advantage.

“It’s been 10 years since we signed the original sale and purchase agreement (S&P) for Block E. Some of the original buyers have died, others may need to ask their children to take on the mortgage instead,” added Sugumaran.

The housebuyers were also requesting a draft of the new S&P to be studied by their lawyer before signing it, he said, adding that the bank which offered them the housing loan should inform them on the status of their loan agreement and the interest involved.

“Many of the residents want to know whether they can cancel the previous loan, and whether they were still eligible as it has been many years,” said Sivarajan.

Sivarajan added that the residents should also be informed about the possibility of compensation for late delivery, as their housing problem had been ongoing since 2004.

Selangor Housing Committee chairman Datuk Iskandar Samad said there were many housing issues in the PJS areas, and that the state government was working to resolve them by dealing with each group separately.

“For the residents and the financial issues, this is something that we have to work with the bank to resolve,” said Iskandar.

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By: WONG WEI-SHEN

“The property industry has a larger multiplier effect than other industries. Hence, stimulating the industry should therefore have a larger impact on the wider economy,” group managing director Tan Sri Leong Hoy Kum (pic) said.

PETALING JAYA: Mah Sing Group Bhd is proposing to the Government to bring back the developer interest bearing scheme (DIBS) for first-time home buyers.

The developer is also suggesting a review of the real property gains tax (RPGT) as among several measures to boost the sector.

“The property industry has a larger multiplier effect than other industries. Hence, stimulating the industry should therefore have a larger impact on the wider economy,” group managing director Tan Sri Leong Hoy Kum (pic) said in a statement yesterday.

As part of its wishlist for the upcoming Budget 2016, Mah Sing requested that DIBS be reinstated, but only for first-time homebuyers. This, it said, will make it easier for genuine homebuyers to lock in properties at current prices.

“We laud the Government’s continuous initiatives to encourage home ownership, especially for these buyers,” he said.

The property company also suggested that the Government conduct a review of the RPGT to encourage property investments.

“We are also aware of the government’s concerns about the affordability of properties,” he added.

Leong said total property transactions in Malaysia for the first half of 2015 fell 3.5%, while the value declined 6%.

He said that there was minimal speculation in the market as the number of borrowers with three or more outstanding housing loans made up for only 3% of total borrowers with housing loans.

In Budget 2014, the Government increased the RPGT on properties sold within the first three years of purchase to 30% from 15% previously, and also abolished the DIBS as a measure to curb the speculative market.

“In 2010, the government allowed a flat rate of 5% gains tax across the board and a minimum exemption of RM10,000 gain. Many lauded this move as it has greatly encouraged property transactions,” Leong said.

Mah Sing also urged Bank Negara to relax the lending requirements for first-time homebuyers as well as second-time home buyers looking to upgrade due to bigger families. Easier access to end-financing will assist genuine property purchasers, it said.

It added that the Government should increase the housing grant for youths to compensate for the implementation of the goods and services tax and higher cost of living.

The Government introduced the Youth Housing Scheme in Budget 2015 providing assistance to first-time homebuyers, such as a RM200 monthly financial assistance, 50% stamp duty exemption on transfer documents and loan agreements as well as a 10% loan guarantee.

The company also suggested a full exemption of stamp duty for those buying their first residential property to reduce the transaction cost, compared with the current 50% exemption.

“We would also like to urge the Government to extend the exemption or lower the stamp duty rates for all property transactions,” said Leong.

Furthermore, Mah Sing hopes the Government will consider further reducing personal income tax for the middle income group, so the rakyat would have more disposable income to invest in the property market.

It also suggested changing the status of low-cost housing to affordable housing, in order to allow the lower and middle income groups access to homes with better amenities and facilities.

“Currently it is adopted in Selangor. We hope to see a nationwide initiative towards building homes that meets the rakyat’s needs,” it said.

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SHAH ALAM: Eco World Development Group Bhd is optimistic of achieving its 2015 sales target of RM3bil despite the current challenging economic environment.

President/chief executive officer Datuk Chang Khim Wah said as of August this year, the group had recorded total sales of RM2.37bil from its mixed development projects launched nationwide.

“We are quite confident of achieving our sales target, given the overwhelming response to our projects in the Klang Valley and Iskandar Malaysia, Johor,” he told reporters after the group’s EGM yesterday.

He said among the hot-pick projects for Eco World currently were Eco Sanctuary, Eco Majestic in the Klang Valley, Eco Tropics in Iskandar Malaysia and Eco Meadows in Penang.

During the EGM, Wah said the group received shareholder nod for the proposed development of 181.96ha of leasehold land in Batu Kawan, Penang, for RM796.27mil.

The mixed-development project, named Eco Marina, was expected to have an estimated potential gross development value of RM10bil over the next 10 years, he said.

“The first phase of the project will be launched by end of next year, starting with residential development, mostly landed houses,” he said

On outlook for 2016, Wah said the group still expected to see demand from buyers despite the expectation that the market would remain challenging.

“We know the market will be challenging next year, but looking into sales that we achieved so far, even in the last two months at all our sales galleries, we see the demand is still quite good,” he said. – Bernama

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KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) has secured an RM174.5mil contract from Sunway Iskandar Sdn Bhd for the construction of houses in Pulai, Johor Baru.

In a filing with Bursa Malaysia, SunCon said the contract was in relation to the main building works for the proposed strata development on Plot F27 to construct 222 units of linked houses, cluster homes and semi-detached houses in two phases on part of the land held under PTD 199240 in Pulai.

The project is is due for completion by Dec 31, 2017, and is expected to contribute positively to the SunCon group’s earnings from the financial year ending Dec 31 onwards.

SunCon added that the project was a related-party transaction by virtue of Evan Cheah Yean Shin being a director and major shareholder of SunCon, as well as a director of several subsidiaries and the major shareholder of Sunway.

Tan Sri Dr Jeffrey Cheah Fook Ling, Puan Sri Susan Cheah Seok Cheng, Sarena Cheah Yean Tih, Sungei Way Corp Sdn Bhd and Active Equity Sdn Bhd are major shareholders of both SunCon and Sunway.

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BY BAVANI M

The futuristic four-tower building was to replace the current 12-storey Menara DBKL 2 to stand tall next to Menara DBKL 1.

THE plan to replace Menara DBKL 2 with a new high-rise building has been called off.

Kuala Lumpur mayor Datuk Mohd Amin Nordin Abdul Aziz (pic) said the redevelopment project had to be cancelled as the Government had decided that the multi-million ringgit project was not feasible in the current economic climate.

Instead the priority now was to build more affordable housing for the people, he told StarMetro.

He added that the decision was arrived at after reviewing other projects planned for the capital city.

“We are reviewing all our commitments for 2016. There are many projects planned for next year, and we decided that, based on the current economic situation, we really have to choose either to spend a lot of money on Menara DBKL 2 or to focus on affordable housing,” he said.

Last year, former mayor Tan Sri Ahmad Phesal Talib had announced that Menara DBKL 2 in Jalan Raja Laut would be demolished and replaced by a skyscraper to create more office space, as DBKL intended to relocate all its departments under one roof.

The announcement raised many questions as the local authority had spent a substantial sum, estimated to run into seven figures, renovating and upgrading Menara DBKL 2, including upgrading all its lifts, some months earlier.

DBKL had bought the building about 10 years ago from the Selangor State Development Corporation and it housed several departments including Licensing and Petty Traders Management, Urban Transport, Internal Audit, and Information Management.

The proposed skyscraper, estimated to cost a whopping RM500mil, would have been designed by Hijjas Kasturi Associates after the firm won a competition organised by DBKL.

The plan also included two floors of retail space and four tower blocks.

Ahmad Phesal had also said that all departments currently housed in Menara DBKL 3 in Jalan Raja Abdullah would be relocated to the new tower, because being located on prime land, it could be rented out easily.

Currently, DBKL has three administrative buildings – Menara DBKL 1 and 2 located in Jalan Raja Laut and Menara DBKL 3, also known as Menara Wawasan DBKL, less than 2km away in Jalan Raja Abdullah.

DBKL’s decision then had received a lot of criticism including from Asli Centre of Public Policy and Studies chairman Tan Sri Ramon Navaratnam, who had said that the project needed full consultation with the people before any decision was finalised especially when the current building was functioning well.

Opposition MPs in Kuala Lumpur had earlier questioned the mayor’s decision to build the new tower, saying that it was a waste of taxpayers’ money and, at their first meet-the-mayor session, had urged him to cancel the project.

On hearing of the latest decision Titiwangsa MP Datuk Johari Ghani expressed his happiness.

“The government must show its commitment in building low- and medium-cost units for the people,” he said.

Setiawangsa MP Datuk Ahmad Fauzi Zahari said the decision to scrap the project was the best news he had heard so far.

“This is great news for the people of Kuala Lumpur and this shows that the Government cares for the residents and is listening to their woes by deciding to build more affordable homes instead,” he said.

Several DBKL employees based at Menara DBKL 2 said they were notified via SMS that the project had been cancelled and that they would not be moving out.

“We were told to start unpacking and that the inconvenience was regretted,” said an employee who wished to remain anonymous.

“The text message also said we would be given written notification later,” the employee added.

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Kuala Lumpur mayor Datuk Mohd Amin Nordin Abdul Aziz said there was a pressing need to build more affordable homes, which was why the Menara DBKL 2 project was scrapped.

“After reviewing everything, the Government decided that we should focus on more affordable housing projects,” he said.

He added that the Government had identified a plot of land in Segambut to build homes catering to middle-income earners.

“These units would be like the ones in People’s Housing Schemes, and instead of RM124 a month in rental, we will charge them RM500,” he said.

Titiwangsa MP Datuk Johari Ghani, who is also Deputy Finance Minister, said: “Times are hard and people are suffering; they need affordable units, not units that cost RM300,000 and above.

“They need units that can be rented out at RM500 a month, which is a more realistic sum,” he said.

Amin Nordin also said that Kuala Lumpur City Hall (DBKL) was re-examining the luxury condominium project in Datuk Keramat and was considering to convert it solely for affordable housing.

The development, which was supposed to be built on a green lung, had raised the ire of the public.

Datuk Keramat residents took to the streets last week to protest the sale of the green lung to a private developer who planned to build luxury condominiums there.

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BY ANGIE NG
angie@thestar.com.my

Opportunities abound for well-planned and holistic learning cities.

EDUCATION  is undoubtedly the basic foundation to build a strong, stable and progressive world, based on the notion that educated people will have a higher propensity to absorb knowledge, and hopefully will be able to contribute towards a more progressive and harmonious world for all mankind to thrive.

Taylor’s University Lakeside Campus in Subang Jaya.

According to famous American poet and essayist Ralph Waldo Emerson: “The secret in education lies in respecting the student.” This is more so in the current information age and the opening up of so many channels of information and learning platforms, that with the proper hardware and software, quantum leap progress can be made by mankind through education. After all, the human mind has immense power and can achieve great things, even seemingly insurmountable feats or miracles.

In order for Malaysia to up its ante and progress into a robust nation status, much more needed to be done to provide the best education we possibly can to all Malaysians – from primary school right up to tertiary levels.

Given the increasing student population in the country, there is a need for more education hubs and cities to be established that can potentially yield many intrinsic benefits, including massive savings in foreign exchange (forex) expenses – a rising cost that is being further exemplified by the sharp drop in the ringgit, and potentially also bring in more forex earnings to the country, if we have our own crop of Ivy League institutions that will be able to attract quality students to our shores.

Well-planned education cities and hubs will require holistic planning to bring together reputable institutions that cater to the different ages of students, accommodation for the students and academic staff, good connectivity to major highways, and also the various ancillary facilities for the communities living there.

Forward-looking and visionary developers need to offer unique selling propositions in their developments that include spicing up their project offerings with value-adding features and amenities, and one of the game-changing themes being deployed by developers is education-themed developments that cater to the needs of young families with growing up children.

Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) president Datuk Siders Sittampalam. Siders is also PPC International Sdn Bhd managing director.

According to property consultancy, PPC International Sdn Bhd managing director Datuk Siders Sittampalam, education cities are part of mega integrated or township developments that comprise residential, commercial, industrial and other public amenities such as medical facilities, leisure and entertainment parks. They will contribute to the development of new growth areas, especially where growth in some states is relatively slower.

“Educational cities bring immense social and economic benefits to the country, and they are considered the most valuable initiatives undertaken by any government in pursuit of nation building.

“Domestically, it provides wide and systematic education to the youth of the nation. Harnessing our education prowess not only brings economic benefits, it enhances our human capital and creates a highly skilled and specialised workforce. It will also encourage our students to engage in research-based pursuits and industries.”

He says Malaysia has positioned itself to a large extent as a regional education hub that is attributed by competitive course fees, varied study options, and branches of international university campuses at affordable cost. This is further underpinned by relatively low living cost, a safe and peaceful country, and political stability.

Siders, who is also the president of Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS), elaborates that while there are a number of education cities in the country, they are mainly concentrated in the southern and central regions.

“There is scope for more education cities to be developed in the northern region, especially in Penang, and the eastern region, notably in Terengganu and Kelantan. This would expand the educational opportunities to the local people there and contribute to the growth of property development in those areas. Also, it will create multi-disciplinary and specialised courses to be made available in the country. For example, education cities in the northern region may be of medical and manufacturing-based courses,” Siders observes.

Savills Malaysia deputy managing director Paul Khong concurs, noting that education cities are great stories for development in Malaysia.

“This sector is almost recession-proof as most parents give high priority to their children’s education, while cutting back on other expenses. Many newer projects are now being moved into education city(s) for better synergy and larger land plots for development with the various incentives offered,” Khong says.

Knight Frank Malaysia managing director Sarkunan Subramaniam says by harnessing quality education at affordable cost will benefit a wider student population, reduce forex outflow to other countries, attract foreign direct investment into the country, slows down brain drain, and drives economic and innovation growth.

University of Reading Malaysia’s new campus in EduCity, Iskandar Malaysia.

Education hubs or cities will be able to provide good manpower to businesses within the rest of the developments and form the resource pool of educated and skilled workforce, besides raising academic standard and improving job prospects for the people.

Sarkunan notes that good education cities should be equipped with the basic facilities and infrastructure such as quality and affordable student accommodation, leisure facilities such as campus sports and activities, arts and cultural activities, easy access to and from campus (cycling paths), and to train stations and airports, as well as convenience stores, banks, groceries, mini-markets, hypermarkets, post office, and food and beverage outlets.

“Malaysia has several education hubs or cities, notably EduCity in Iskandar Malaysia, Johor, that comprises a cluster of international universities (Malaysian campus) and institutions such as Newcastle University Medicine Malaysia, University of Southampton, University of Reading, Management, Marlborough College Malaysia, and Management Development Institute of Singapore.

“In Cyberjaya – Putrajaya, Selangor, there are Multimedia University, Cyberjaya University College of Medical Sciences, and Limkokwing University of Creative Technology; while Nilai boasts of a number of prestigious institutions, including Heriot-Watt University Malaysia, INTI International University & Colleges, Nilai University, Nilai Polytechnic, Manipal International University, Cempaka International Ladies’ College, and British international school Epsom College in Bandar Enstek Campus.”’

He says the Klang Valley is another bastion for education, with Taylor’s University, Sunway University, HELP University, KDU University College, and International Medical University among the reputable institutions. In Sepang, Sunsuria City will be home to the new Xiamen University Malaysia Campus.

Kampar, Perak, has Universiti Tunku Abdul Rahman (Utar), Tuanku Abdul Rahman University College (Perak campus) and Westlake International School.

Scope for new education corridors

Another upcoming education hub will be located in Pagoh, Johor, where the first phase of the development will comprise Universiti Tun Hussein Onn Malaysia, International Islamic University Malaysia, UTM and Politeknik Pagoh.

Sarkunan says there is a need to expand courses and programmes offered by the local campuses of foreign universities to cater to a wider student population, given that selected universities only offer limited courses and programmes currently, and also to ensure that the teaching staff is adequate and competent.

“Malaysia can take a leaf from other successful education cities, including London, Sydney, Melbourne, Toronto, Montreal, Boston, Tokyo, Seoul, Singapore and Hong Kong. The upcoming global education hubs include Dubai in UAE, Doha in Qatar and Jeju in South Korea,” he adds.

Malaysian REIT Managers Association chairman Datuk Stewart Labrooy.

Malaysian REIT Managers Association chairman Datuk Stewart Labrooy points out that education cities in Malaysia are a work in progress, noting that Malaysia has used transnational education strategically to meet demand from specific student population groups and to cap the outflow of currency via students who study abroad.

“The country has taken a market-oriented approach and has ambitions to become a regional hub for international education. It aims to attract 150,000 international students by this year. It is envisaged that a proportion of those international students will be attracted to one of the foreign branch campuses (of which there were eight – mainly Australian and UK – as of January 2013 according to statistics compiled by British Council, 2013), established with the encouragement of the Government.

“This led to the EduCity concept and the first major development of this concept is EduCity Iskandar,” Labrooy says.

Meanwhile, facilities for other types of education and training are also important. These include vocational training institutes, not-for profit schools, research centres and schools that enable young people to receive their A-Levels after some time in the labour market.

The direct impact on the local economy will be through tuition fees or student expenses incurred within the country, and also the talented and educated labour pool if the students stay back to work and live in the country. There is also job creation at the education institutions and spillover effect to the other businesses that will benefit from the student and teacher population.

Labrooy says besides facilities like sports facilities, transportation, pubs, cafes, shopping malls, entertainment outlets, student accommodation and research facilities, there should be room for academic discourse.

“In order to be truly competitive, the education cities in Malaysia should host academic events, or invite guest speakers, and make sure that the universities and the cities will be known for their academic successes and academic freedom,” Labrooy stresses.

Artist’s impression of Management Development Institute of Singapore in EduCity, Iskandar Malaysia.

Siders gave his thumbs up to EduCity in Iskandar Malaysia as probably the best planned educational city in Malaysia that will have 600 acres of fully integrated development comprising universities, institutes of higher education, R&D centres, student accommodation, as well as recreational and sport facilities – a first of its kind in Asia.

“The educational theme can be a catalyst for commercial and social activities that will promote businesses, communities and other sectors with the concentration of the student community. This further enhances the quality of workers in respect of knowledge in the country and the region at large.

“A well-trained and educated workforce will be better equipped to develop new industries. This will lead to a knowledge economy and society. In addition and on a larger perspective, Malaysia as an educational hub will lead to higher inflow of foreign funds into the country.”

Siders says successful education cities should have good public transportation such as MRT/LRT, shuttle bus, student accommodation with sports and recreational facilities and other basic amenities.

Labrooy also gave his vote to EduCity in Iskandar Malaysia as a pioneering multi-varsity education hub located in Nusajaya, comprising universities and institutes of higher education, academia-industry action and R&D centres, as well as student accommodation, shared sports and recreational facilities.

“EduCity aspires to create Asia’s first ‘best-in-class’ higher education destination with a superior urban environment in which students and staff can live, work, study and play. There is space for eight international universities to share facilities and, ideally, offer complementary provision. From the perspective of the three UK universities involved (Newcastle University, University of Southampton and University of Reading), the intention was for different institutions to offer courses in an area of specialist expertise (such as medicine and engineering). To this end, exclusivity agreements were provided to certain institutions so that they have a monopoly on delivering EduCity-based courses in a particular subject area for a number of years.”

Labrooy, however, observes that student numbers at EduCity currently seem to lag behind expectations (except for Marlborough College which is growing better than expected).

“There is a massive delay in construction and most campuses are expected to fully operate only in 2017 or later,” he adds.

Labrooy says Kuala Lumpur Education City, which was launched in 2007, has not progressed as expected (except for Epsom College which has opened its doors) and the website does not work. “The time horizon for this one looks like it’s going to be 15 to 20 years,” he adds.

“Meanwhile, Pagoh Education Hub in Johor, will not have any international universities but rather have mainly Malaysian universities operating there with the exception of a cooperation with Imperial College. There is also no website to check,” he says.

There are a number of issues that needed to be fixed, including marketing, financing, and ensuring a high reputation and academic discourse which includes freedom of speech and the right to discuss diverging political opinions openly.

“Not being fully operational and benefiting from economics of scale also means that universities have to offer the full range of services and cannot benefit from sharing facilities, services and cost with other universities just yet.

“In order for the education city to really work, universities should enable students to cross-register at the different universities to ensure a holistic education and not a single focus on one subject, and also to make use of the concept of one campus for multiple universities from different countries and with different focuses,” Labrooy concludes.

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BY NURUL ASMUI MD AZMI
asmui@ocision.com

StarProperty.my is gearing up to attract property hunters in the Klang Valley.

PROPERTY hunters will be able to shop around for their dream property to buy at the StarProperty.my Fair from this Thursday until Sunday at the Tropicana City Mall, Petaling Jaya, for the second time this year.

The four-day event offers the perfect platform for real estate developers to display their latest projects and

connect with potential clientele. First-time buyers, homeowners and investors should not miss out this opportunity to shop for their ideal home.

A wide range of projects from 13 prominent developers are waiting to be discovered at the fair. The list of developers include DK-MY Properties Sdn Bhd, Ekovest Bhd, IJM Land Bhd, Ireka Engineering & Construction Sdn Bhd, Land & General Bhd, Mah Sing Group Bhd, Matrix Concepts Holdings Bhd, Naza TTDI Sdn Bhd, See Hoy Chan Sdn Bhd Group, Setia Haruman Sdn Bhd, Sime Darby Brunsfield, Titijaya Land Bhd and UEM Sunrise Bhd.

Besides the extensive property displays, there will be two promotional activities going on. Visitors at the fair can participate in a quick survey at the StarProperty.my booth to be in the running for a Samsung Galaxy Tab 3 Lite or a one-year subscription of The Star e-paper worth RM350.

Additionally, those who purchase a property from any developers at the fair can participate in a lucky draw by submitting their sales order form to StarProperty.my booth for a chance to win Senheng cash vouchers worth RM888, RM2,888 and RM5,888.

The StarProperty.my Fair will be held from Oct 22 to 25, from 10am to 10pm. Admission is free. For more information, visit fair.starproperty.my

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BY CAITLYN NG LI YUIN
liyuin@ocision.com

Gone are the days of travelling great distances for the best schools as nowadays, developers are bringing the best institutions to the doorsteps of their residents.

The sprawling campus of the Universiti Sains Islam Malaysia in Putra Nilai is surrounded by lush greenery.

PARENTS will have a host of matters to worry about when it comes to their first-born child, noticeably the family expenses. With an exponential increase in expenses given an extra person to feed, clothe, raise and care for, parents will still want the best for the apple of their eyes.

So it would make perfect sense for people who are searching for a home to live in an area with everything under one address. Not only will it greatly reduce the costs derived from travelling great distances to get to amenities, but also diminish the headache that is sure to arise from ferrying the family to and fro.

Taylor’s College in Subang Jaya is a centre of excellence in pre-university studies, renowned for its academic track record.

In this issue, we take a look at the townships that have education as their main focus. It is an excellent answer to parents who are on the hunt for a home that would offer them peace of mind for many years to come as well as easing the burden of their wallets. Vibrant and bustling with life, yet filled with pockets of greenery for some respite, these type of townships are fast becoming the favoured choice for first-time homebuyers and investors alike.

The main feature that townships under this genre would obviously have are the schools, colleges and universities that one would be able to find in these vicinities. Not surprisingly, homes in these townships would be able to command a higher price due to the demand of living in close proximity to good institutions. One example would be the self-contained Bandar Sunway township.

Monash University in Bandar Sunway consistently ranks among the top one per cent of world universities.

From schools to colleges and renowned international universities, such as Sunway International School, Sunway College and Monash University, parents would indeed be spoiled for education choices at Bandar Sunway. There is even a unique school for those who aspire to master the arts of French cuisine and patisserie: Le Cordon Bleu Institute.

Furthermore, these houses would be able to fetch good rental yields, adding on to its growing appeal. Once the kids have grown up and “flown out of the coop”, the owners could easily choose to have the house rented out to a group of college or university students who wouldn’t mind staying there in order to reduce the time taken to get to and from classes.

Putra Nilai is chock-a-block with retail shops and supermarkets that cater to the needs of its residents and visitors.

Full facilities and great amenities are usually aplenty in townships, more so when educational institutions are in the neighbourhood since there is a ready catchment population in the form of the families and students (both local and foreign). Over in the town of Nilai, there are many educational townships that host a number of learning institutions. They include Putra Nilai, Nilai Impian and Kota Seriemas, just to name a few.

Some of the institutions that can be found there include Nilai International School and Universiti Sains Islam Malaysia in Putra Nilai; Inti University College and Nilai University College in Nilai Impian; and the world-class KPJ Healthcare University College in Kota Seriemas.

Residents of Nilai Impian, a township touted as the “Lake Garden Township”, are enveloped by the luxuriance and serenity of nature.

Medical centres, sports complexes and retail shops can be found packed into these sprawling developments to service people and provide a range of activities. Taking into consideration that there are people from all walks of life, developers would have ensured a balanced mix of eateries like fast food chains, local Malaysian delights and international cuisines. Leisure and recreation can be done at any one of the beautifully landscaped parks such as the Discovery Park in Nilai Impian, Laman Ilmu in Kota Seriemas and the Nilai Springs Golf and Country Club in Putra Nilai.

The KESAS highway is one of the many major arteries that seamlessly connects UEP Subang Jaya to other parts of Klang Valley.

As for public transportation and infrastrure at these townships, you can be sure that residents and visitors will have the best ease of accessibility. UEP Subang Jaya by Sime Darby is another prime example of a highly successful educational township, with plenty of major highways like the Federal Highway, LDP Highway, New Klang Valley Expressway (NKVE) and KESAS Highway linking to it. In addition, there is the existing Subang Jaya KTM station and the upcoming LRT Putra Line extension which will pass through Subang Jaya and UEP Subang Jaya.

With so much going for these townships, it’s no surprise that many developers are now trying to emulate the allure by leveraging on education theme in their developments. Not only will this benefit the residents and their future generations, but bring plenty of visitors to the development (commercially advantageous) as they drop their kids off at the premises.

The post Educational-themed developments: The way forward appeared first on Malaysia Premier Property and Real Estate Portal.

BY VIKNESH ASHLEY

More can be done to promote education-themed developments.

Malaysian and foreign students make up the student pool in Malaysia today.

TAKE a peek into many educational establishments across Malaysia and one would find a high population of both local and foreign students pursuing their chosen fields of studies in various parts of the country.

Malaysia is safe, has many options for education and is relatively cheaper compared to other countries, yet providing quality education and experience like those in other leading countries around the world.

Property is also a key factor for some parents choosing Malaysia as an educational destination. The depreciating ringgit is attracting many parents based locally as well as abroad to invest here, to house their children during the education period. Parents can use these student accommodation as a means of generating additional income once their children have completed their education.

Aside from foreigners and locals, expatriates living in Malaysia also influence the growth of the education sector in Malaysia. Malaysia currently faces a growth in student population due to multinational companies placing their headquarters here including Nestle, Ikea, Tesco, Dell, Intel as well as Hewlett-Packard.

These expatriates would usually opt to place their children in international schools due to the syllabus that is covered, for example British, American, Australian and the International Baccalaureate syllabus.

There are several parts in Malaysia offering world-class education for primary, secondary and tertiary, thanks to the increase in the number of international schools as well as higher educational institutions that have grown in numbers and are placed in locations easily accessible by the masses.

It is clear that education helps abundantly in the growth of areas such as Bandar Sunway that is home to a number of prestigious education institutions.

They include Sunway University College, Monash University Malaysia, Taylor’s University Lakeside Campus, Taylors College Subang Jaya Campus as well as INTI International College Subang.

These institutions are popular among students from Indonesia, Sri Lanka, Turkey, the Maldives and Africa, just to name a few. While pre-university courses are extremely popular, some common university-level courses here include culinary arts, communication and media management, architecture, interior design and psychology.

Students looking to rent property in this area will have many options to choose from as Bandar Sunway is a well-integrated township that is able to meet the needs of the students. For students looking to stay close to the educational institutions, there are many student apartments that are well connected to the other parts of Bandar Sunway via public transport as well as pedestrian walkways.

There are also other accommodation options that are available in Bandar Sunway that are connected to many establishments such as Sunway Pyramid Mall and popular educational institutions, including Sunway University College, Monash University Malaysia and Taylor’s University Lakeside Campus.

Another excellent example of education driving growth of a city is Cyberjaya, that has gained popularity by being an educational hub particularly for private tertiary institutions. Multimedia University was introduced as one of the “starter projects” for Cyberjaya in the Government’s effort to produce more ICT graduates to meet the demand of the MNC companies as well as other IT companies within the smart township. Since Multimedia University, Cyberjaya has attracted many other institutions to set up campuses there.

Foreign companies set up in Cyberjaya require work force supplied via Malaysian ICT graduates, instantly providing job opportunities.

According to Setia Haruman Sdn Bhd executive director Lao Chok Keang, Cyberjaya is home to Multimedia University, the Limkokwing University of Creative Technology, Cyberjaya University College for Medical Science, University IslamMalaysia and Kirkby International College.

He says the other institutions of higher learning near Cyberjaya include the Harriot Watt University and University Malaysia of Computer Science and Engineering in Putrajaya.

It is also home to the ELC International School, Seri Puteri Girls School as well as primary and secondary government schools to meet the needs of Cyberjaya’s growing residential population.

“Additionally, staff working in Cyberjaya can turn to the Knowledge Workers Development Centre (KDC) by Multimedia Development Corporation (MDeC) where on-going training as well as certification program are conducted.

“Cyberjaya currently holds a large population of students totaling up to 23,000 students in the various institutions,” says Lao.

More are in store for Cyberjaya. A Chinese school called Sekolah Jenis Kebangsaan China Union is currently being developed here to better serve the Chinese community in Cyberjaya as well as in Putrajaya, while a local university has bought a piece of land campus there.

There is news of a Korean International School being built on the fringes of Cyberjaya due to open in 2016 and UiTM Denkil Campus set for operation in 2016.

Matrix GlobalSchools offers national, international as well as pre-school education.

According to Matrix Concepts Group Sdn Bhd executive director Datuk Lim Kiu Hock, many townships in Malaysia have grown successfully in the past due to the presence of education institutions. One of the earliest areas to have transformed due to education include Subang Jaya where one of the first international school first kicked off with Sri Kuala Lumpur School in the 1990s.

“Over in Seri Kembangan one would have noticed in its early years, when the area was still underdeveloped, that the Alice Smith School was a huge pull factor for people buying into the area.”

Matrix Concepts hopes to replicate the success of successful edu-city destinations by providing a township that is centered on an exclusive first-of-a-kind educational offering in Seremban, dubbed Bandar Sri Sendayan.

The “star” of this township is the Matrix Global Schools providing international and national education as well as pre-school education based on the Cambridge International Certificate of General Secondary Education (ICGSE).

Nilai is known for its array of educational offerings, including Nilai University, Nilai International School, Inti International University Nilai, Global Institute of Studies and Nilai International College. It is clear that with its wide arrays of education products, Nilai is meeting the needs for primary, secondary and tertiary education. How does Matrix Global Schools differ?

Matrix Global Schools offer holistic education that meets experiential learning.

Matrix Global Schools CEO Felix E.B. Lee says, “Our concept of learning here at Matrix Global Schools is unique, proving that education can in fact be intertwined with learning as the school employs a balance of in-class as well as outdoor learning, bringing about a whole new experiential learning curve for students assisted by modern technology as well as state-of-the-art facilities.”

The Cambridge Curriculum has been infused into the syllabus of students studying the national school syllabus at Matrix Private School just in case the students may later choose to sit for the core papers of ICGSE. The transition will then be a lot easier.

Lee says Matrix Global Schools also facilitates the mastering of Mandarin via the schools’ collaboration with Kongzi Institute, University Malaya, instantly recognizing as well as authorizing the Seremban campus as the Test Centre for the Office of Chinese Language Council International (Hanban) in Beijing to conduct the International Chinese Proficiency Test carried out by teachers serving at the school from Beijing, China.

The post The appeal of world-class education hubs appeared first on Malaysia Premier Property and Real Estate Portal.

KUALA LUMPUR: Each fully gated and guarded precinct has its own internal security system.

And safety being a big focus for the Eco World Development Group, things have got that much safer now – with an auxiliary police unit to call its own.

At the launch of the unit at the Eco Majestic township in Kajang yesterday, 46 auxiliary police officers showed off skills after 63 days of training at the Malaysian Police Training Centre in Langkawi.

“While guards from private security firms will monitor resident and visitor movement, the auxiliary unit will hold police powers, meaning they can apprehend criminals.

“All our townships will have their own auxiliary police units,” Eco World security services general manager Low Thim Chim said.

Also present at the launch were Bukit Aman Crime Prevention and Community Safety Department director Comm Datuk Acryl Sani Abdullah Sani, Eco World chairman Tan Sri Liew Kee Sin, president/CEO Datuk Chang Khim Wah and director Tan Sri Lee Lam Thye.

Eco World received approval for its own auxiliary police units in January.

Expressing hope that the unit will serve as a benchmark to other such firms, Comm Acryl Sani said there will always be gaps to fill in terms of public safety and effective crime prevention as the police had limited manpower.

“When the private sector takes the initiative to set up auxiliary police units, they help to ease the burden of the police force.

“We are thankful as this means our police personnel can focus on other areas which are more densely populated,” he added.

Comm Acryl Sani said the auxiliary police had the same powers as the police force under the law.

Lee, who is also the Malaysia Crime Prevention Foundation deputy chairman, reminded the unit that it was important to serve with integrity, trust and discipline.

“Having gone through the training and judging by their display, I am confident they will be committed and dedicated to the job,” he said, adding that public safety is not to be taken for granted.

“We must always be vigilant. Bear in mind that each of us has the responsibility to keep our community safe,’’ he added.

Lee urged residents to help the police unit by acting as their eyes and ears.

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KUALA LUMPUR: Malaysia’s top-performing fund is buying the nation’s property companies after a slump in shares left valuations at their cheapest level in at least seven years relative to global peers.

Eastspring Investments Bhd has started “nibbling” on some of the stocks that have been beaten down on the prospect the real-estate industry will eventually recover, Chen Fan Fai, the Kuala Lumpur-based chief investment officer, said in an interview.

He declined to identify the companies he’s buying. The Bursa Malaysia Property Index is valued at 8.9 times 12-month projected earnings, a 32% discount to the Bloomberg World Real Estate Index.

Chen’s optimism offers a rare bright spot in a stock market whose value has slumped 14% this year as international investors unloaded Malaysian equities amid the political turmoil, falling oil prices and a selloff in emerging-market assets.

The FTSE Bursa Malaysia KLCI Index has dropped 2.5% so far in 2015, set for its second year of declines, the longest losing streak in 17 years.

“We don’t expect them to perform in the next few months, but valuations have come to a point that it is worthwhile to start buying,” said Chen, whose small-cap fund has beaten 90% of peers over the past three years with an overall return of 31%, according to data compiled by Bloomberg.

The property gauge of 92 developers on the Bursa Malaysia slid 0.2% at the close.

The measure has tumbled 14% in the past 12 months, the worst performing industry group, as record household debt, a consumption tax and stricter lending hurt buyers’ ability to purchase homes.

Among developers, UEM Sunrise Bhd, whose stock has fallen 29% in the past year, is trading at 13.7 times projected 12-month earnings, below its five-year average of 27, Bloomberg data show. The stock climbed 1.7% yesterday.

Mah Sing Group Bhd, down 23%, is trading at the cheapest level in more than two years. SP Setia Bhd, Malaysia’s biggest property developer, has a multiple of 11.7, near the lowest level since 2006.

Not everyone is buying. Jason Chong, the Kuala Lumpur-based chief investment officer at Canada’s Manulife Asset Management Services Bhd, said the industry was facing too many headwinds.

SP Setia, UEM Sunrise and Mah Sing said in e-mailed interviews that the property outlook remained “challenging” and that the subdued demand will spill into next year.

“Weaker sentiments as well as difficulties obtaining end financing approval have impacted sales for the year,” Ng Chai Yong, chief executive officer of Mah Sing, wrote in an e-mailed response to questions.

The company has increased its marketing activities this year while slashing its new property launches by almost half, he said.

Some developers say selling lower-priced products have helped them weather the slowdown.

Datuk Khor Chap Jen, acting president and CEO for SP Setia, said that its mid-priced range product this year had been “very successful” and will help it achieve its 4 billion ringgit sales target this year.

The company’s single-story bungalow project last month achieved a 70% take-up rate in one weekend, he wrote in an e-mail.

“The property cycle comes and goes and eventually it will pick up,” Eastspring’s Chen said. “There aren’t many screaming opportunities in the market right now.

What we look for are beaten down stocks that are still with sound fundamentals,” he said. – Bloomberg

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PETALING JAYA: Guocoland (M) Bhd said its associate company Vintage Heights Sdn Bhd (VHSB) is disposing of a parcel of land in Sepang for RM474.99mil.

Upon completion of the disposal, VHSB is expected to realise a net gain on disposal of approximately RM290mil, said Guocoland, adding that approximately RM116mil is expected to be attributable to Guocoland.

In a filing with Bursa Malaysia yesterday, Guocoland said VHSB entered into a conditional sale and purchase agreement with Putrajaya Properties Sdn Bhd (PPSB) and Hap Seng Consolidated Bhd (HSCB) for the proposed disposal of the 73 million sq ft land.

“The proposed disposal will enable VHSB to realise its investment in the property,” said Guocoland, adding that the proceeds will be used for VHSB’s working capital purposes, repayment of borrowings and/or distribution to shareholders of VHSB.

“The net gain attributable to owners of the company represents an increase in earnings per share and net assets per share of the company of about 17.31 sen,” it said.

The company said it expected the proposed disposal to be completed in the second half of 2016.

Guocoland said the freehold parcel of land was currently being used as an oil palm plantation, whereby the oil palm trees planted on the property are aged about 23 to 36 years.

It added that the average yearly fruit bunches harvested from the property for the past three years was about 3,457.5 tonnes.

Hap Seng Consolidated is a shareholder of VHSB, which had on March 27, 1992 acquired the land from Hap Seng Consolidated. The cost of investment was RM50.48mil then.

The market value of the land has since increased to RM203.15mil based on valuation by CB Richard Ellis (M) Sdn Bhd as at Jan 31, 2013. The net book value of the land was RM84.16mil as at June 30, 2015.

Putrajaya Properties is wholly-owned by Putrajaya Holdings Sdn Bhd, the master developer of Putrajaya.

Guocoland, formerly known as Hong Leong Properties Bhd (HL Prop), was supposed to jointly develop some parts of Putrajaya with Putrajaya Holdings in 2003, but the deal fell through.

According to reports, HL Prop wanted its own design and layout for the precinct but Putrajaya Holdings was not agreeable as that would have delayed delivery of the project.

HL Prop was supposedly also concerned about the selling prices and the valuation, which was supposed to be carried out by a third party.

Based on reports, the first batch of houses built for government staff in the country’s new administrative capital, the profit margin shared between Putrajaya Holdings and its joint-venture (JV) partners was less than 5%, which was a far cry from the 20% to 30% expected.

It was understood that the JV partners were assured that margins would be better in future projects, but some were not too comfortable with that assurance.

The post Guocoland to get RM116mil from land sale appeared first on Malaysia Premier Property and Real Estate Portal.

BEIJING: Growth in China’s real estate investment over the first nine months of the year cooled to its slowest rate since the global financial crisis, although sales improved, underlining a mixed recovery in one of the most critical sectors of the economy.

Property investment, a main driver of the economy, grew 2.6% in the first nine months of 2015 from a year earlier, marking the slowest rate since the January to February period of 2009, data from the National Bureau of Statistics (NBS) showed yesterday.

“The fact that real estate investment is weak will hinder Q4 economic recovery,” said Oliver Barron, a China policy researcher at NSBO in Beijing.

While home sales and prices have improved in bigger Chinese cities over recent months after a barrage of government support measures, conditions remain weak in smaller cities and a huge overhang of unsold homes is discouraging new investment and construction.

New construction fell 12.6% during the January to September period from a year earlier though it slowed from a 16.8% annual drop in the first eight months, the NBS data showed.

Reflecting the sharp drop in housing starts, sales of earth excavating machines in China fell 35% in September from a year earlier, the China Construction Machinery Association said.

The property malaise has weighed on the world’s second-largest economy, which is expected to post its slowest growth in a 25 years in this year.

Still, the recent rebound in home sales could suggest the housing market is at least bottoming out.

The floor area of property sold grew 7.5% during the January-September period, up from a 7.2% increase in January to August, according to the NBS data.

Regulators cut downpayment requirements again late last month for first-time home buyers as they look to reduce the property market’s drag on the broader economy.

China’s average new home prices rose 0.3% in August from July, the fourth straight month of gains, though they were still down 2.3% from a year earlier, according to official data out last month. – Reuters

The post Real estate investment slows appeared first on Malaysia Premier Property and Real Estate Portal.

BY RUBY LIM

REO Suite comprises 1,115 studio and two-room units, with built-up areas ranging from 370sq ft to 609 sq ft.

MOST of us start our day by commuting to work and brave through tedious traffic jams before we can reach our destinations.

One of the main causes of these lengthy travelling times is the high job density in the central business districts.

With more companies opting for prime locations in the city centre, it contributes to the congestion in the hub and the spike in business operations costs.

MCT Berhad has envisioned a long-term solution for these concerns through its One City project.

Touted as the last parcel of commercial land in USJ, Subang Jaya, the 31ha plot of land is located within a mature 30-year-old neighbourhood.

Certified with MSC Malaysia status, the integrated three-phase project has a gross development value of RM5bil.

“Sime Darby developed about 1,200ha of land in USJ and 730ha in Putra Heights with more than 58,000 houses.

“One City is located between these two areas as well as near Puchong, and the 20,000ha Hicom industrial area, which makes it a natural location for an integrated development,” said MCT Bhd sales, marketing and office leasing senior general manager Teoh Eng Poh.

Linked to major highways such as Damansara-Puchong Highway (LDP), Elite Highway, New Klang Valley Expressway (NKVE) and South Klang Valley Expressway (SKVE), travelling to the city centre as well as Petaling Jaya, Putrajaya and Cyberjaya would take about 25 minutes.

With an upcoming LRT station located just 300m away, the extension train services from the Kelana Jaya Line are set to provide convenience within the community.

The development, which is well into its third phase, prides itself on creating a living condition that integrates commercial and lifestyle conveniences.

“These factors complement one another, enabling One City to become a self-contained development,” said Teoh.

Phase three spans 8.09ha of One City, and is located adjacent to phase one and two.

It consists of three corporate tower blocks, a hotel with 954 rooms, one SOFO block, one SOHO block and a mega mall measuring 1.5 million sq ft.

“A total of RM40mil will be invested to build road linkages between the first and second phases to the third phase,” said Teoh.

He added that third phase alone would have sufficient parking space, with up to 9,000 bays available.

While the other components of phase three are in the pipeline, the SOFO tower, called the REO Suite, has been released for sale.

REO Suite comprises 1,115 studio and two-room units, with built-up areas ranging from 370sq ft to 609sq ft.

Equipped with two sky-high levels of leisure facilities at 46th and 47th floor, the tower features units designed in modern yet practical layouts that accommodate to today’s lifestyle.

With a GDV of 500mil, the units are priced between RM352,000 to RM602,550, set to be completed together with the other components in the second quarter of 2020.

With the right attributes, One City aims to become one of the preferred business addresses, especially for multinational companies.

“You just have to put in the right proportion of elements into the right location, and it would be hard to fail,” concluded Teoh.

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Media personnel admiring the model of the Eco Sanctuary residential project.

MEMBERS of the media were given the opportunity to view the latest residential units of Eco World Development Group Bhd called the Eco Sanctuary project.

Around 100 media personnel viewed the three show units of the condominium The Park, the semi-detached units and bungalows which will be developed into a luxurious eco-themed mixed project called Eco Sanctuary.

It is part of Canal City development located south of the well established Kota Kemuning township in Shah Alam.

Eco Sanctuary marks Eco World’s second township development in the Klang Valley. It was planned as a “modern-day sanctuary” with a green approach to development.

Seamless integration between landscaping, architectural design and wholesome community living formed the basis of the development’s master plan.

The “eco” emphasis of the project lies not only in a higher percentage of green spaces provided – equating to about 30% of the land area but other amenities like cycling and walking paths as well as green designs of the homes.

These include a north-south orientation, large windows for cross ventilation and fittings such as solar water heater, LED streetlights, rainwater harvesting tanks and recycling compartments.

On hand to welcome the guests was Eco World chairman Tan Sri Liew Kee Sin who was the perfect host as he went around greeting and having a few words with the media personnel.

Local stand-up comedian Harith Iskander thrilled the guests with stories about his family.

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PETALING JAYA: A broad range of property projects, ranging from residential to commercial developments, will be exhibited at the four-day StarProperty.my Fair at the Tropicana City Mall concourse here from Thursday.

Some of the interesting projects that will be showcased include Inwood Residences within Pantai Sentral Park, D’Latour in Bandar Sunway, EkoCheras along Jalan Cheras, The Potpourri in Ara Damansara, Meritus within Oasis Damansara and Residensi Sefina in Mont Kiara.

The fair is organised by StarProperty.my in collaboration once again with premium partners IJM Land , Tropicana Corp Bhd and Matrix Concepts Holdings Bhd.

Property buyers can shop around for their dream home at the fair as it will bring together 13 developers that will display their latest projects under the same roof.

The participating developers are Ekovest Bhd, IJM Land, Mah Sing Group Bhd, Matrix Concepts Holdings Bhd, UEM Sunrise Bhd, See Hoy Chan Sdn Bhd Group, DK-MY Properties Sdn Bhd, Ireka Engineering & Construction Sdn Bhd, Land & General Bhd, Naza TTDI Sdn Bhd, Setia Haruman Sdn Bhd, Sime Darby Brunsfield Holding Sdn Bhd and Titijaya Land Bhd.

Property buyers who purchase a property during the fair will stand a chance to take part in a lucky draw via submitting a sales order form at the StarProperty.my booth to stand a chance at winning Senheng cash vouchers worth RM888, RM2,888 and RM5,888.

Visitors to the fair on Thursday and Friday will stand a chance to win a year’s subscription of The Star e-paper worth RM350 just by participating in a quick survey held at the StarProperty.my booth. Those visiting the fair on Saturday and Sunday stand a chance to win a Samsung Galaxy Tab 3 Lite and also a year’s subscription of The Star e-paper.

The StarProperty.my Fair will be open from Thursday to Sunday between 10am and 10pm. Admission is free.

For more information, visit fair.starproperty.my.

The post Shop for your dream house appeared first on Malaysia Premier Property and Real Estate Portal.

IN our article last month, we highlighted the report by Khazanah Research Institute on ‘Making Housing Affordable’, which showed that the Malaysian all-house price index grew steadily at a compounded annual growth rate (CAGR) of 3.1% from 2000 to 2009, and suddenly accelerated at a CAGR of 10.1% between 2009 and 2014.

Many existing property owners are overjoyed to see steep price increase in their properties compared to the cost of acquisition. These gains are referred to as ‘paper gains’ as the gains have yet to be realised and only exist on paper. However, we at the National House Buyers Association (HBA) are of the opinion that steep price escalations especially within a relative short span of time are not necessarily a good thing. For purpose of case study, we use the real life stories of some of our volunteers who were willing to share some data of their property purchase.

Please refer to our September 21 column for the Affordability Rating.

An overview of the type of properties bought by our volunteers together with their income levels and current property values are outlined in Table 1.

Based on Table 1, it would be reasonable to assume that Deepak, Ismail and Rachel should be happy with their ‘paper gains’, but looking at it deeper will reveal a very different situation.

Shrinking target market

In 2004, Deepak, Ismail and Rachel managed to buy their first home based solely on their salaries and the price was within the three-times annual income, which was considered as ‘affordable’.

However, just 10 years later and despite climbing up the corporate ladder, all three of them would find it ‘seriously unaffordable’ to ‘severely unaffordable’ to buy the same property based on their current salaries. This would also mean that other executive level wage earners to the senior management wage earners will also find it ‘unaffordable’ to buy the same property.

This will effectively mean that the target market for Deepak, Ismail and Rachel should they want to sell their current house has shrunk significantly. With a median annual household income of RM91,4402 in Kuala Lumpur for 2014, Rachel will discover that half of the population in Kuala Lumpur cannot afford to buy her modest apartment. Rachel can only hope to find joint-buyers in the middle management position with annual household income of at least RM166,667 to buy her apartment to be deemed as ‘affordable’.

The situation is equally bleak for Deepak and Ismail who could afford to buy their landed property just a decade ago whilst only in middle management position. Deepak and Ismail must also hope to find joint-buyers in senior management position with combined household income of at least RM183,333 and RM266,666, respectively, to buy their intermediate link house.

New purchase is also out of reach

We have ascertained that based on their current salaries, Deepak, Ismail and Rachel will find it ‘unaffordable’ to buy their current properties. This would mean if they want to acquire another property, they would have to dispose of their current property and hopefully, with the gains and cash from selling their current house, be able to afford something bigger and better.

The Household Income and Basic Amenities Survey 2014 by the Department of Statistics revealed that the Median Monthly Household Income for 2014 in Kuala Lumpur was RM7,620 or RM91,440 per annum.

However, based on our calculations in Table 2, even after disposing of their current properties, Deepak, Ismail and Rachel still cannot afford the ‘upgraded property’ that they desire.

From Table 2, we can see that back in 2004, the loan instalment was about 16% of their respective salaries. This is well within the range that Bank Negara’s ‘rule of thumb’ that the maximum single loan instalment is a third of the borrowers’ income and maximum combined loan instalment is half of the borrowers’ income.

From the above table, we find that despite disposing of their current property which has enjoyed steep gains, the new loan instalment as a percentage of their respective incomes is much higher than before, ranging from 43.47% to 55.07%. This would imply that to buy their upgraded property, buyers like Deepak, Ismail and Rachel will have to spend a larger chunk of their income and reduce on other spendings and possibly have no spare cash or savings to weather any sudden emergencies.

Increase in market value does not equate to increase in built quality or living quality

Without insulting any house buyer, a property that cost RM140,000 to buy from a developer will always be a “RM140,000 property”. Just because the market price has increased to RM500,000, it does not mean that the quality has suddenly improved, giving the new buyer a RM500,000 ‘built quality property’. This is the situation faced by many prospective house buyers; that the prevailing prices of properties, both existing and new properties offered by developers, do not reflect their built quality and living environment. Basic ‘bread and butter’ properties that were affordable for the lower- and medium-income earners just 10 years ago are now even unaffordable for the high-income earners.

As a result, many younger house buyers are willing to settle for smaller but cheaper units. Capitalising on this new trend, developers are building more smaller units that are actually studio-styled shoe-boxes with one or two bedrooms of no bigger than 650 sq ft, and priced them at around RM500,000 so that joint middle-income earners can afford it. But is it really worth paying so much for something so small? In the long run are such small units conducive for family living?

Is there a magic number?

Conventional wisdom has taught us that investing in properties is the best hedge against inflation in the long run. Many prospective house buyers want to invest in properties as a retirement fund or to fund their children’s education and hope that the returns from investing in properties are higher than merely keeping their money in the bank. Hence, every house buyer wants to see healthy appreciation in the value of their property.

However, when property prices escalate too fast within a short span of time, it can be harmful even to current owners, as shown above, when it is difficult for owners to sell their current property or upgrade to a larger property. Paper gains are only paper gains until the property is sold, but when your ‘bread and butter property’ is no longer affordable to half of the population, something has gone terribly wrong somewhere. Existing property owners cannot afford to upgrade their current properties and buy something ‘bigger and better’ and are stuck with their current homes. Clearly, such a situation does not benefit even existing property owners.

There is no real magic number per se on what is the acceptable or maximum annual increase in property prices. So long as the annual property increase is higher than the inflation rate and the rate of fixed deposits offered by banks, and still affordable to its intended target market, house buyers who buy for their own stay and for long term investment should be contented.

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