SP Setia clinches most trusted developer award

KUALA LUMPUR: SP Setia Bhd was recognised recently for the second time running as the developer Malaysians trust most in the Reader's Digest Asia Trusted Brands 2012 study.

The company was awarded the Gold Trusted Brand Award in the Property Development category at the gala awards dinner held last month.

Minister of International Trade and Industry Datuk Seri Mustapa Mohamed presented the award to SP Setia director Tan Sri Lee Lam Thye.

The SP Setia brand has grown regionally with the developer's first international foray into Vietnam in 2007 when it joined forces with the country's top state-owned conglomerate Becamex IDC Corp to develop EcoLakes at the MyPhuoc Industrial Park.

In 2010, EcoLakes was named first runner-up in the FIABCI Prix d'Excellence Award for Best Development Master Plan. 

Following this success, the group has also launched a mixed development project called Eco Xuan at Lai Thieu in Tuan An District, Binh Doung Province.

Read more: SP Setia clinches most trusted developer award http://properties.btimes.com.my/Current_News/BTIMES/articles/jrsp/Article/#ixzz1z6e2oyWt

RM1,000 psf in PJ

Some of the serviced apartment units at Icon City in PJ already cost over RM1,000 psf.

RM1,000 psf in PJ 
Remember a previous Early Bird article that talked about, how property in Petaling Jaya will eventually hit the RM1,000 per square foot benchmark? Well, that benchmark has been breached.

Coincidentally, it is another property development that belongs to the Mah Sing Group. We are referring to the Icon City development in PJ that spans 8ha (20 acres).

This development is at the intersection of the Damansara-Puchong Highway (LDP) and the Federal Highway, formerly the site of the Panasonic factory within the Sungei Way Free Trade Zone.

Both the Icon Residenz serviced apartment component as well as the I-SoVo (Small Office Versatile Office) component (Phase 1), have exceeded RM1,000psf.

While bookings for the residential units were recorded since last September, it was only last month that actual sales were transacted following approval from the authorities.

And one of the smaller Icon Residenz units at 594sq ft was sold for RM632,000 or RM1,063 per sq ft. This was achieved on May 12 when the development was “officially” launched.

Icon Residenz serviced apartments total 572 units but only 248 units were open for sale. There are five layout options from one-bedroom to four plus one-bedroom units ranging from 557sq ft to 1,795sq ft. The average cost per sq foot is RM986 psf.

The i-SOVO (small office versatile office) units comprise:

- 366 Duplex units, with a built-up from745sq ft to 1,094sq ft
- 91 Simplex units at 436sq ft

Average cost per square foot is RM950 while the highest price unit, in terms of per square foot, was sold for RM1,080 psf.

IGB eyes hospitality, office REITs

KUALA LUMPUR: IGB Corp Bhd (IGB), which will have RM800 million cash following the listing of IGB Real Estate Investment Trust (REIT), is looking at spinning off two more REITs in the next five years.

Group managing director Robert Tan Chung Meng said that the group would ultimately like to have a hospitality and office REIT, but the exact timing for the product could not be determined now.

"It could be anything between two and five years," Tan said.

The timing, he said, now is suited for a retail REIT and hence it is establishing a IGB REIT, which will have two of Malaysia's most prized mall assets - The Mid Valley Megamall and The Gardens Mall.

IGB's preference is also to have separate REITs for different business and not to place it all under the same REIT.

IGB, a property developer, also operates hotels and manages office buildings to obtain recurring income. 

The listing of the IGB REIT is expected to be in September 2012.

Some 3.4 billion units will be issued under the exercise for the two malls which have been a valued at RM4.6 billion.

Currently, both assets come under KrisAssets Holdings Bhd, in which IGB has a 75 per cent stake. KrisAssets will sell the shopping complexes to the IGB REIT.

IGB's stake in the soon-to-be-listed trust will be 51 per cent. The dilution of the stake would provide IGB with an estimated RM800 million in cash, following the listing exercise.

Tan, who was speaking to reporters following IGB and KrisAssets annual general meeting yesterday, said that RM800 million will be used for future expansion both locally and abroad.

The board has no intention to maintain the listing of KrisAssets. 

Meanwhile, Tan said IGB continues to look for properties in the country and abroad for merger and acquisition purposes, and take advantage of the opportunity in the uncertain global economy which could offer assets at a bargain.

Read more: IGB eyes hospitality, office REITs http://properties.btimes.com.my/Current_News/BTIMES/articles/igb26/Article/#ixzz1z6biUvJZ

B-Land Bhd achieves RM490m pre-tax profit

Berjaya Land Bhd (B-Land) has announced a five percent increase in its pre-tax profit for the financial year ended 30 April from RM468.4 million in the previous year to RM489.8 million.

The company added that its revenue also increased by 4.0 percent from RM4.06 million to RM4.2 billion.

"The growth in revenue was contributed by the strong sales from the jackpot games and the higher occupancy and room rates reported by the hotels and resorts division," said B-Land.

For Q4 ended 30 April, the company achieved a pre-tax profit of RM177.9 million, up from RM105.1 million over same period last year.

Meanwhile, the company's revenue climbed 2.0 percent from RM1.06 billion to RM1.09 billion.

Thus, B-Land expects a continued consolidation of earnings from jackpot games coming from its subsidiary Berjaya Sports Toto Bhd.

The company also expects its resorts and hotel business to maintain its occupancy rates as well as average daily rates.

Real estate sector remains optimistic: Zambry

Malaysia's real estate sector remains strong, unaffected by political and economic uncertainties, according to Datuk Seri Dr Zambry Abdul Kadir, Menteri Besar of Perak.

"In 2011, the state recorded 54,452 property transactions with a combined value of RM9.23 billion. This marks a 22.6 percent increase compared to 44,323 property transactions in 2010 totalling RM5.75 billion."

Dr Zambry noted that commercial and office space occupancy rates have also increased from 86.6 percent in 2010 to 88.2 percent last year.

Meanwhile, the state government will provide RM26 million assistance to affected developers for their unsold properties.

"We will enlist the help of related government agencies such as the State Economic Development Corporation (SEDC) and Syarikat Prasarana Negara Bhd," added Zambry.

On objections to the building of a religious school in Taman Pegoh Aman in Ipoh, he said that the issue should not be politicised.

"The school had obtained the necessary approval from the local authority and was already 80 percent complete."

"The argument that the school is blocking the view of houses hardly holds water as it only occupies a small portion of a field," he said, questioning the opposition's claim of putting people's interest on top.

"But here they are against a project that fulfils the people's need for better education."

Nadayu targets 100% sales growth

KUALA LUMPUR: Nadayu Properties Bhd is targeting to achieve almost 100 per cent sales growth to RM400 million this year, backed by upcoming several housing projects launch.

"As of to date, the company has about RM280 million unbilled sales, which will take us for the rest of the year," said Chairman Hamidon Abdullah.

For the first phase of Nadayu Melawati, it will be handed over to buyers in the second quarter of the 2012 financial year 2012 and has received favourable feedback from prospective buyers, he said.

"Our phase 1 of Nadayu 92 Kajang will also be completed according to schedule and will be handed over in the second quarter of this year," he told reporters after the company's annual general meeting today.

Hamidon said the company also received overwhelming response with about 50 per cent sales for its Nadayu 28 project to be launched in early August.

-- BERNAMA 

MRCB to develop prime Bangsar land?

Malaysian Resources Corp Bhd has emerged as the frontrunner to develop a prime 8.09-ha site on Jalan Bangsar in Kuala Lumpur where the Unilever headquarters and factory once sat.

Sources said MRCB is close to inking a deal with landowner Pelaburan Hartanah Bhd (PHB).

They added that MRCB plans to build several office towers, a
serviced apartment-cum-hotel, a retail mall and boutique outlets on the plot.

The project is expected to rake in more than RM5 billion in gross
development value (GDV), they said.

“It will be an extension of the KL Sentral development in Brickfields, and may be linked to the Bangsar LRT station,” said a source.

MRCB is the developer of KL Sentral, an integrated transport hub with GDV of over RM10 billion. The project is slated to complete in 2016.

The sources said MRCB is fine-tuning its masterplan for the project and expects to submit to the relevant authorities soon.

It is still unclear if MRCB will acquire the land outright or develop it in a joint venture with PHB.

“PHB may give the land to MRCB in exchange for properties in the development and cash. It may also develop the land jointly with MRCB,” said the source.

Business Times had reported early this month that PHB was studying a few proposals it had received to develop the area.

PHB had pre-qualified more than five property developers last year, to submit their proposed masterplan for the land development, before shortlisting the list to three.

The three are MRCB, SP Setia Bhd and Mah Sing Group Bhd. 

Formerly a well-known landmark housing Lever Brothers’ soap and margarine factory, the land has been left unoccupied since Unilever Malaysia moved out in 2003.

The land used to belong to Railway Asset Corp (RAC) but came under the ownership of PHB in early 2011. PHB bought the land from RAC at about RM150 per sq ft two years ago.

PHB is a subsidiary of Yayasan Amanah Hartanah Bumiputera, created under Budget 2006 with an initial capital of RM2 billion, to promote Bumiputera ownership of prime real estate.

According to Zerin Properties chief executive officer Previndran Singhe, the land, if it has been converted to commercial use, could fetch about RM600 psf, given its frontage to the busy Jalan Bangsar.

"If it has not been converted to commercial use, then I reckon it could be worth RM400 psf to RM450 psf," he told Business Times.

As a perspective, SP Setia had paid under RM400 per sq ft for a 10.1ha land on the former Kampung Haji Abdullah Hukum site along Jalan Bangsar, not too far from the former Unilever headquarters.

It is developing KL Eco City, with a projected GDV of RM6 billion on the site.

The land is said to be currently worth around RM600 per sq ft, given that several phases of the project have been launched.

By Business Times

Government keeping an eye on home prices in Malaysia

The Malaysian government is keeping a close eye on the movement of house prices and is willing to implement other measures to ensure that houses remain affordable for the people.

Datuk Lajim Ukin, Deputy Housing and Local Government Minister, said that several methods were implemented such as the 70 percent reduction of the ‘Loan to Value' (LTV) on housing loans during the purchase of a third and subsequent houses.

He added that the real property gains tax has been reintroduced since 1 January 2010 to cutback speculation that prompted the hike in house prices.

"Currently, the government does not control house prices as it is determined by market forces and freeeconomic practice to encourage the growth of the housing industry," said Lajim.

He added that the government targets to build 78,000 units of low cost houses for the low income group under the 10th Malaysia Plan.

Additionally, the 1Malaysia housing programme was introduced to help medium income groups purchase houses between RM150,000 and RM300,000.

Developers taking advantage of BNM policy loophole

Bank Negara Malaysia (BNM) will unlikely relax its credit tightening policies, despite pressures from the housing and automobile sectors, according to a report by the Borneo Post.

RHB Research Institute Sdn Bhd (RHB Research) noted that "the money supply and liquidity flow are still strong."

"The continued growth in household loans signal the suppressed demand for properties as well as other big-ticket items moving forward."

BNM's data for the month of April revealed that residential property loans climbed 13.7 percent year-on-year, while non-residential property loans rose at a faster rate of 23.4 percent.

Likewise, during the first four months of the year, residential property loans grew by 13.5 percent as compared to non-residential property loans, which climbed by 22.3 percent.

However, the 70 percent loan-to-value (LTV) mortgage cap for third property financing will no longer be applied to SOVOs (Small Office Versatile Office) or SOFOs (Small Office Flexible Office), as these are categorised as commercial products.

"As they are not under residential title, buyers are not subject to the 70 percent LTV cap imposed by BNM. In other words, this means that buyers will still be able to secure their margin financing of up to 85 percent of the property value, even if the borrowing is the borrower's third mortgage," said RHB Research.

Because of this exemption, more developers are launching SOVO/SOFOs to keep their sales going, amid the central banks' tighter regulations and uncertain economic conditions.

RHB Research also explained that Malaysia's real estate sector is affected by the domestic and global economic outlook

"The economic risk in the Eurozone countries as well as the upcoming 13th General Election in Malaysia and hence the risk premium has already caused an overhang especially in the property sector."

Kota Marudu gets slew of new commercial projects

The Kota Marudu district is driven to become the economic hub of northern Sabah, said Datuk Dr Maximus Ongkili, Minister of Science, Technology and Innovation (pictured).

Dr Ongkili, who is also the Kota Marudu MP, noted that property prices boosted 35 percent in the past two years. With ten new developmentsapproved for Kota Marudu, shophouses are likely to double in the coming three years.

"The lots for the five ongoing shophouse projects have been snapped up, showing that we are on track with economic and commercial development fast taking place," he said.

He added that more business people and tourists are visiting the district, as over 10 public-listed companies are involved in their oil palm plantations.

"There is also an immediate need for more hotels here, at least of three-star rating in Kota Marudu," the MP added.

However, Dr Ongkili stressed the need for wider roads and a proper waste management in response to the growing needs of the business community and the people.

Japanese top participants in MM2H scheme

More Japanese are making Malaysia their second home, snapping up properties in the Klang Valley and other urban places. They have also become the top participating nationality in the Malaysia My Second Home (MM2H) scheme, surpassing China and Iran.

Based on data from the MM2H Centre, Japan has been the top participating nation since 2011, when the country was deluged by a tsunami, followed by the Fukushima nuclear crisis.

Japanese find Malaysia an attractive second home due to its strategic location, political stability and economic growth. Aside from that, it also offers cheaper living costs and modern health facilities.

Datuk Seri Michael Yam, President of Real Estate and Housing Developers Association (REHDA), said thegovernment, for the past years, has focused on making Malaysia a comfortable and convenient place to live in for the Japanese.

"These people used to work in Malaysia. When they went back, they probably thought that this is not a bad place to have a second home, especially since it is one of the cheapest places to live in," said Yam.

Yam added that Mont Kiara is one of the largest Japanese enclaves in the country and is also popular with other expatriates.

Meanwhile, Shotaro Ishihara, Managing Director at Tropical Resort Lifestyle said that more Japanese are looking for overseas property to relocate and to invest in.

Ishihara, whose sells Malaysian properties in Japan, noted that Penang offers an attractive option as real estate there costs less than those in Singapore, Hong Kong, Kuala Lumpur and Japan.

"However, only a small number of Japanese have bought residential property in Penang."

"This is because Penang is known in Japan as a holiday resort and not as a property investment destination. The rental yield is also still not attractive," Ishihara explained.

Sabah outshines other states in terms of investments

Sabah pulled the highest bulk of private investments in Q1 this year, according to Mukhriz Tun Dr Mahathir, Minister of Deputy International Trade and Industry.

Datuk Seri Musa Aman, Sabah Chief Minister, believed the healthy investment figures prove that investors are comfortable with the stable and peaceful environment in the state. Additionally, the cooperation between the people also contributed to lure investors to inject funds into boosting the state's economy further.

"With the billions of ringgit invested in Sabah, it is clear that investors are at ease and very comfortable in the state," he said.

"Therefore, we call on the people to always work together and join forces with the Barisan Nasionalgovernment to develop the country and state," he added.

With RM10 billion worth of investments from the private sector, Mukhriz revealed that Sabah is the leading state to receive the highest amount of investments, followed by Selangor, Johor, Terengganu and Sarawak.

Chong Wei ventures into the property business

World renowned badminton player Datuk Lee Chong Wei has ventured into the property business with a RM160 million condominium project in Ampang.

Dubbed the A Residency D' Suria Condominium, the 18-storey project is located at Ampang Hilir. The condominium units are priced from RM500, 000 to over RM1 million, depending on the built-up area.

Chong Wei, who is also a director of the housing developmentcompany Chong Wei Bina Jaya, launched the property on Friday at Kuala Lumpur Convention Centre, together with his co-owners.

"I have made up my mind to be involved in business after my retirement. This (the launch of the condominium project) is my future. I need something to fall back after I stop playing badminton," said Chong Wei.

"As a child growing up, my family didn't own any landed properties. As a player, I had a dream to buy a house for my family and I have done that. Now, I'm in this business so that I can provide others with homes," he added.

The project is a team up between Chong Wei Binajaya Sdn Bhd and Perak-based property player SSF Corp.

"We have already sold 40 percent of the 252 units available due to its strategic location and are confident it will get a good response," said Wayne Chew, Executive Director of SSF.

Chew noted that Chong Wei Binajaya is a unit of the SSF. However, he refused to disclose details of their collaboration.

SSF started as a contractor when it was established back in 1995. Currently, it has built more than 1,000 homes, largely in Perak including joint ventures with the state government.

A Residency is set to be launched by September and is slated to be fully developed by 2014.

BERJAYA booth at PIHex 2012

Model at work distributing flyers

Menara Bangkok Bank model

Roar!

BERJAYA properties are good buy!

Pudu Jail project may mirror Hong Kong's largest mall

Property developer UDA Holdings may renovate the Pudu Jail to become an integrated transport hub, similar to the Elements Mall in Hong Kong.

According to Nur Jazlan Mohamed, Chairman of the UDA, the plan is expected to contribute over RM8 billion in gross development value (GDV).

Nur Jazlan added that the company hired consultants to assess proposals from the Everbright International Construction Engineering Corp (EICEC), a China government-linked company and from the Ministry of Finance (MOF).

"We will compare the two proposals to see which is more superior. The study, which will take another six to eight months, will be presented to the government and the final decision is theirs," he said.

Seeing that the proposal mirrors Elements, the largest shopping mall in Hong Kong, UDA apparently favours EICEC's proposal.

"We prefer the proposal by EICEC as we get to control the land and it will give us RM2.4 billion worth of investment properties, which in turn will provide us with long-term recurring income," Nur Jazlan noted.

He added that EICEC pledged to transfer the properties to them four to five years after construction begins.

"The key here is money, which we need for long-term sustainability," noted Nur Jazlan, adding that the company has no other choice than to be competitive, as the government no longer provides any direct assistance.

The Pudu Jail redevelopment is part of the Economic Transformation Programme (ETP) under the New Economic Model, which aims to transform Malaysia into a high-income nation by 2020, as well as turn the Klang Valley into the Greater Kuala Lumpur economic district.

Image: The Star

Dijaya lays out RM54m for a boutique hotel

Property developer Dijaya Corp Bhd will acquire a boutique hotel from Multi-Purpose Holdings Bhd for approximately RM54 million.

The hotel, built on a 1,106 sq m freehold land in Kuala Lumpur, is strategically located near the China town and the Tung Shin Hospital, according to a report by The Business Times.

"The proposed acquisition will provide the group with stable, long-term and sustainable income stream," said Dijaya.

It added that with the property's prime location, "the propertywill be invaluable for the group to improve its profitability and thus shareholders' value."

NGOs push government to halt hillslope projects

The state government received another appeal from a non-governmental organisation (NGO) for the immediate suspension of all approved hillslope projects as existing guidelines for such development need to be revised.

D. Kanda Kumar, Adviser at Malaysian Nature Society (MNS) Penang branch, said that the projects refer to those already approved but have yet to start work and those that had started work but are yet to be completed.

"The state government should look into reducing the height of buildings currently allowed for hillslope development. The density of the projects allowed for hilly areas should be looked into as well," he noted.

Last Monday, environmental group Sahabat Alam Malaysia and the Consumers Association of Penang urged local authorities, state government and the Federal government to stop all hillslope projects.

The NGOs also pleaded to cite mangrove and forest areas as permanent forest reserves.

S. M. Idris, President of both NGOs, claimed that Penang is becoming ‘unliveable' due to ‘mindless development'. He added that the government who granted permit for these developments must disclose the basis for the approvals.

Meanwhile, Chief Minister Lim Guan Eng earlier said that the new administration did not approve any project above 76 m since he assumed office in March 2008.

Tenants’ market as KL sees addition of 6.9mil sq ft of office space

PETALING JAYA: Kuala Lumpur's (KL) office market is expected to remain competitive this year with a substantial amount of over 6.9 million sq ft of office space scheduled to come on stream this year, which will put further pressure on rental rates.

Property consultancy, Knight Frank in its Second Half 2011 Real Estate Highlights report said competition for tenants was anticipated to intensify and it would remain a tenants' market.

Buildings due for completion this year include Menara Worldwide, Menara Petronas 3 Phase II, Menara Binjai, Menara FELDA, Integra Tower at The Intermark, Menara Darussalam (Grand Hyatt) and The Crest @ Jalan Sultan Ismail.

The report said the completions would see an additional 2.8 million sq ft of office space, bringing the projected cumulative supply in the city to 49 million sq ft.

In the city's fringe, an estimated 4.2 million sq ft of office space is expected to come on-stream. They include Dua Sentral, Lot A KL SentralCIMB HQ, Lot E KL Sentral Park, The Horizon Bangsar South (Phase 3), Menara LGB, 348 Sentral and Lot G KL Sentral.

DTZ Research's Property Times Kuala Lumpur Q4 2011 report said the overall office sector forecast pointed to a weakening market as an oversupply was expected due to major completions scheduled in the next two years in the midst of a weakening economy.

“By 2014, an additional 13.4 million sq ft of office space will enter the market. Of this, about 11 million sq ft is accounted by 16 buildings located within the city's golden triangle, compared with the previous peak in 1998 which saw a total office space of 4.8 million sq ft,” the report added.

Meanwhile, transaction of new office buildings had been fairly active with both local and foreign investors looking around for good buys.

Property Times said investment transactions in the last quarter of 2011 saw a jump of 3.6 times in value totalling RM4.8bil against RM1.35bil in the third quarter of last year.

This was mainly contributed by the listing of the Pavilion REIT with an asset value of RM3.54bil.

It said going forward, given the projected slower economic growth, and a weakening property market across most segments, there would be more caution, and as a result deals would probably become more challenging due to a widening gap between buyers' and sellers' expectations.

“With the forthcoming general election expected to be called in early 2012, an element of political uncertainty will arise and may deter investors, especially foreign entities which would like to see a clearer political landscape settling in after the election before embarking on major purchases,” the DTZ report added.

The Knight Frank report said although there was a substantial amount of supply coming on stream, it had yet to translate to a decline in occupancy.

“In KL city, average occupancy during the second half of 2011 was recorded at 84.8% while in KL city fringe, it was 87.5%. Grade A offices in both the KL city and KL city fringe achieved higher occupancy rates at 87.0% and 89.8% respectively attributed to limited existing supply of good grade office space.”

It pointed out that the leasing market remained active and was driven mainly by the oil and gas and financial sectors. Major leasing transactions such as Weatherford and Transocean took up about 31,000 sq ft each in GTower while Citigroup committed to approximately 100,000 sq ft in Cap Square Office Tower II.

The review period also saw Petronas committing to some 30,000 sq ft in Vista Tower while Technip and Shell took up approximately 77,300 sq ft in total in the newly completed Dijaya Plaza.

The report said well-located quality and good grade office space with MSC status and green features might command higher rental rates due to limited existing supply of such prime space.

“The situation has led to more developers aiming to provide office space with both MSC status and Green Building Index (GBI) accreditation,” it added.

Sime Darby & SP Setia forms consortium for Battersea bid

Sime Darby Bhd and SP Setia Bhd have formed a consortium in an effort to outbid other companies vying for London's Battersea Power Station, the largest brick building in Europe.

"The consortium is positive that its plan for a mixed-sustainable development will be well received," said Sime Darby.

Located on the south bank of River Thames, the derelict 38-acre site was put up for sale in February following failure of its owners to pay off its £500 million (RM2.47billion) debt.

An unnamed source revealed that out of the 10 bids made for the site, one came from Russian billionaire Roman Abramovich - owner of the Chelsea Football Club.

Presently, SP Setia is one of the three remaining bidders for the landmark site, said Tan Sri Liew Kee Sin, Chief Executive Officer of SP Setia.

The Battersea Power Station, which was featured on the front-cover of the 1977 Pink Floyd album Animals, is around 3.5km from the Houses of Parliament and has been empty for nearly 30 years.

Although the Employees Provident Fund (EPF) has been approached to provide financing for the bid, it has not made any commitment, said Nik Affendi Jaafar, General Manager for Public Relations at EPF.

SP Setia also offered to buy the debt associated with the Battersea Power Station in November for £262 million (RM1.285 billion) but was rejected.

UDA seeks compensation for BB Plaza tenants

UDA Holdings Bhd, one of the leading property groups in Malaysia, seeks an initial RM100 million compensation from the Treasury or MRT Corp Bhd for the 150 tenants of Bukit Bintang Plaza (BB Plaza) who will be affected by the Bukit Bintang underground station development, said a report from the Sundaily.

Nur Jazlan Mohamed, Chairman of UDA, noted that while the company agrees to ‘sacrifice' for the MRT project, it would hinder the company's business and its plan to provide space for bumiputra retailers in the city.

Next month, MRT Corp will take over the BB Plaza's frontage and the Yayasan Selangor building for the development of the Bukit Bintang underground station.

"For the next four to five years, we will still lose BB Plaza frontage when MRT Corp starts construction work... this will affect the business...that's why we put forward the suggestion that MRT Corp compensates the tenants," said Jazlan.

On plans to redevelop BB Plaza or sell the mall to MRT Corp, Jazlan said, "We are in discussions now, but it doesn't mean we'll sell."

"If the redevelopment of MRT does go ahead, we have to weigh losing rental income and we have to demolish the building and build it again, which will have additional problems like higher cost of redevelopment and this cannot be acceptable to the Bumi agenda."

Malaysian investment in Australian properties to rise by 15%

Malaysian investments in the Australian property market are expected to rise by 15 percent this year, from RM125 million in 2011.

According to Steven Cheah, Director of Property Talk, investment in Australia for the past two years was consistent at about RM125 million per year.

"This was due to the stronger Australian dollar. But since March, the Australian currency had weakened slightly and so we are anticipating more property investments in Australia," he said.

Cheah noted that Melbourne is the leading destination for Malaysian property investment funds.

"This is because many Malaysians have relatives who have migrated to Melbourne, where you can find a variety of Malaysian restaurants."

"According to the latest research by Australian Property Monitors, of the major capital cities, Melbourne has been the standout performer for house price growth over the last five years, with prices increasing almost 30 percent in just 15 months."

He added that Melbourne and Sydney were always listed in the top three most liveable cities in Asia by ECA International, a research house in Hong Kong.

Time to move or time to improve?

By Andrew Batt

Many homeowners are undecided about improving their existing property or moving to find their dream home. Strutt & Parker, a leading independent estate agency in the United Kingdom, looks into the pros and cons of making the right long-term decision.

The choice of finding a new home is often forced on growing families, who can realise quickly that their existing address is not quite as spacious when baby number two or three comes along.

So they start the often long trek to decide if they should buy a new home or radically makeover the one they have now. Whether you are better off moving house or renovating comes down to two basic issues: the size of your budget and the amount of disruption you can handle.

The cost of renovating often runs over budget and can even spiral out of control so be prepared. The phrase most heard when doing up a wreck is: "It cost twice as much as I thought it would." Set yourself a budget and build in some contingency funding - 15 percent of the total cost is a good guideline.

James Mackenzie who heads up Strutt & Parker's Country House Department believes: "If you are undecided it is important to remember that larger houses are more attainable in a subdued market, so if you can afford it, now is a good time to upsize. Buying when prices are down gives the likelihood of a future increase in value."

Renovating your home can make it more desirable, the number of bedrooms and bathrooms are one of the first things people look at when they are searching for a new home so adding one of these could make a house more sellable.

The kitchen has become the hub of the home- making this a real asset by either extending or making it more open-plan can be hugely beneficial if you are thinking of selling.

Mackenzie added: "Altering your home can add value for a future move - especially improving the layout and flow. My advice would be to ask yourself what you really want - is it a lack of space, or are there other reasons for a change? If so it may be the right time to start looking".

KL Sentral sees a boom in commercial space

KL Sentral, a transit-oriented development that houses the main railway station of Malaysia, is expected to witness a rise incommercial space this year, when three million sq ft enters themarket.

According to CBRE Malaysia, about 6.7 million sq ft of net lettable space is set for completion in the greater Kuala Lumpur area this year, with approximately 3.4 million sq ft located in suburban Kuala Lumpur.

The real estate services group also noted that KL Sentral will house 80 percent of the suburban KL supply.

KL Sentral benefits from the current trend where tenants search for cheaper rentals or less traffic congestion, and are moving to suburban offices from the city centre. Some estimates indicate this trend will likely accelerate in the coming years.

In 2011, KL Sentral gained more than two million sq ft of office space.

"While the overall development has been a success, parking and access issues are commonly cited, and the rents are typically no lower than those in KL city centre," CBRE said.

Meanwhile, the average gross asking rents for Grade A office space remains flat last year, at between RM6 psf and RM8 psf, while occupancy held at 89 percent.

Though there was a slight decline in office space due to expansion of financial and oil and gas firms, property consultants remain cautious about the excess supply in upcoming commercial space, given the 1.5 million sq ft annual absorption rate of new supply.