Saturday 27 April 2013

KL Sentral used RM4m for revamp



By Farah Wahida:

Malaysian Resources Corp Bhd (MRCB), via its unit Semasa Sentral Sdn Bhd, has spent some RM4 million out of its RM13.8 million budget for the renovation of Stesen Sentral Kuala Lumpur (KL Sentral).

To date, completed upgrades include flooring tiles, restrooms, overall station lighting safety surveillance and the VIP lounge at the transportation hub, according to Imran Salim, Chief Operating Officer of MRCB.

“We intend to speed up (the remaining) upgrading works at KL Sentral and complete the construction of the Nu Sentral retail mall, which will enhance the level of convenience for commuters in line with other ongoing development works in the overall KL Sentral CBD,” Imran said.

MRCB also plans to finish the construction of Nu Sentral two to three months earlier than the previously targeted date of end-2013.

The seven-level retail mall, which is a 49:51 venture between Pelaburan Hartanah Bhd and MRCB, is being developed simultaneously with the refurbishment at KL Sentral, which commenced in September 2011,

“The upgrading proposals have been presented to the relevant authorities to cater for the long-term use of the station as an increased number of commuters and patrons is expected (to commute from KL Sentral) when the mass rapid transit (MRT) line is in operation.”

The upgrading works will include internal and external signage at KL Sentral to reduce confusion once Nu Sentral opens.

“We are targeting to finish this in one or two months,” said Imran.

Furthermore, MRCB will also put up six pedestrian bridges connecting KL Sentral and Nu Sentral, Sooka Sentral, Q Sentral, Platinum Sentral, and the monorail and MRT stations for the convenience of its visitors and customers.

Gov't to develop RM6b LRT line



By Farah Wahida:

The government could develop the third light rail transit (LRT) line from Kelana Jaya to Port Klang. Known as the Shah Alam LRT Line, the development is believed to have an estimated cost of between RM5 billion and RM6 billion.

In line with this, Syarikat Prasarana Negara Bhd (Prasarana) is expected to call for tenders for the project in 2014, following proper due diligence by Land Public Transport Commission (SPAD).

A wholly-owned government firm by the Finance Ministry, Prasarana is the operator and asset owner of LRT lines.

Azmi Abdul Aziz, Chief Development Officer at SPAD, revealed that the Shah Alam LRT line will cover 20km to 30 km. However, he declined to comment on the project’s estimated cost.

He added that the tender will be an open one and companies with current contracts for the Kelana Jaya and Ampang LRT line extension projects are permitted to bid.

“It is no more like before where companies that had won LRT jobs couldn't bid for the same development. As long as the companies are qualified and have met the necessary funding and technical requirements, they can bid,” he said.

“This is totally a new line and very important for the public. Shah Alam is becoming densely populated, with new townships coming up…The new line would allow people from Port Klang and Shah Alam to come to the city without hassle. It will complement the existing Kelana Jaya and Ampang LRT lines,” he noted.

Shah Alam line will start from the LRT station in Kelana Jaya, head to the Shah Alam stadium, pass through Klang, and stop in Port Klang.

Henry Butcher to market Malaysian properties in China



By Farah Wahida:

Henry Butcher Real Estate Sdn Bhd has partnered with Singapore-based MLN Investment Holding (Group) Pte Ltd to promote Malaysian properties and investments to Chinese investors. Notably, Henry Butcher Real Estate Sdn Bhd is the marketing consultancy and agency services arm of Henry Butcher Malaysia group.

Held at Henry Butcher headquarters in Malaysia, the signing ceremony was attended by Henry Butcher Marketing chief operating officer Tang Chee Meng, Henry Butcher Malaysia director Long Tian Chek and president Lim Eng Chong. Also present at the ceremony were MLN managing director Leon Liu and MLN chief representative in China Juliet Zhu.

“We see Henry Butcher as a strategic partner with its extensive network and wide range of real estate services that fulfil our clients’ requirements in China,” said Zhu.

“This collaboration will enable MLN and Henry Butcher to work hand-in-hand to promote Malaysian properties, especially sophisticated high-end properties…This strategic relationship is a win-win situation for both of us,” added Zhu.

She also noted that more Chinese are turning to Malaysia “as an attractive property investment destination and an ideal place to stay in view of the generally low property prices, multi-cultural society, good infrastructure and high standard of living,” adding that the agreement is a “significant step forward in our joint marketing effort with a China partner.”

Meanwhile, Long said the partnership will not only expand Henry Butcher’s presence in China, it will also allow the company to provide “professional consultation and services to the Chinese market, hence facilitating investors who have businesses and properties in Malaysia.”

Moreover, the agreement also sees the two companies marketing the Malaysia My Second Home (MM2H) programme in China.

Managed by a team of China-born entrepreneurs, MLN was established in Singapore in 2003, offering investment and migration services relevant to company incorporation, financial and taxation services to the Chinese. It also works closely with Chinese Embassy in Singapore, Singapore Economic Development Board and International Enterprise Singapore.

Pakatan vows to provide affordable housing schemes



By Farah Wahida:

Following the launch of Selangor manifesto by Barisan Nasional, Pakatan Rakyat has also unveiled its own list of promises via a manifesto entitled “Continuing a journey of excellence” that includes affordable housing schemes and construction of public terminal in Shah Alam.

On its statement last Thursday, Pakatan pledged to allot RM100 million to put up a State Housing Development Board and another RM50 million to put up a People’s Housing scheme which will help those who are meeting difficulties in acquiring loans from financial institutions.

Aside from that, it also vowed to provide “comfortable affordable housing” with 800sq ft priced below RM150,000. Pakatan will also build an integrated public transportation terminal in Shah Alam plus a free public transportation like bus services Petaling Jaya, Subang Jaya, Klang, Ka­jang and Shah Alam.

Furthermore, the party assured to decentralise the government through the implementation of local government elections, boost the number of CCTVs and public lighting such as street lights, to establish Selangor Women’s Empowerment Fund worth RM50 million and free breast and cervical cancer checkups, mammogram for women while free prostate and testicle cancer checks for men.

Car in the SKY?


CAR IN THE SKY: As sky garages slowly make its way to the region, NST RED explores the concept of parking your car right next to your high-rise unit

For those who favour landed homes over high-rise living, one major argument has always been that high-rises lack the traditional feeling of a ‘home’. For some, it’s about having a patch of grass — or thatch, as the case may be — to call your own and agonise about weeding every other weekend. For others, it’s about being able to walk out your door straight into your garage or driveway where your car is parked, without having to waste time walking to your parking spot some distance away.

Unless of course, your apartment comes with a ‘sky garage’.

Driving home upstairs
At the heart of it, the concept of en-suite parking brings an element of ‘landed’ appearance to high-rises. For homeowners, the main attraction of opting for a unit with en-suite parking facilities is the ‘home’ feel that comes with being able to park right outside where you live. “Sky garages try to make high-rise living similar to that of landed homes,” says KL See, director of Metro Homes real estate and property agency. “We now have sky bungalows and sky semi-dee houses and a sky garage forms part of the unique features.”

Despite the novel concept, the technology behind it is quite conventional. The idea is not unlike the novelty of having a private lift to your apartment — only this one is big enough to fit your car in. Notably, many implementations of the concept also see advanced recognition technology to verify owners’ identity.

Most residential high-rises featuring sky garages provide car lifts that carry both car and driver up. An example is the 19-storey 200 11th Avenue in Manhattan, New York, where residents would drive up to a special gate where an electronic reader would open the gate after verifying the car — akin to our Smart Tag scanners. As the gate closes behind the entering car, another gate leading to the car lift would automatically open for entry.

Once inside the car lift, the driver would be reminded to turn off the engine as infrared sensors keep track of the car’s position. Occasionally, the driver may be asked to adjust the car’s position by driving slightly forward or backward as needed. Then the lift would automatically go to the driver’s floor where he or she would reverse the car out of the lift into the garage space adjoining his or her apartment — arriving home immediately after stepping out of the car.

Of course, different developers and designers invariably apply their own distinctive touches and styles to the specific workings of their sky garages. Hamilton Scotts in Singapore, for instance — reportedly the first to feature the concept in Asia — uses a biometric scanner to read the resident’s thumbprint before instructing the car lift to send the car up to the resident’s en-suite sky garage. Additionally, the driver would have to ride up in a separate lift that is still within the view of the car lift.

Pros and cons
Apart from bringing an element of landed living to the increasingly more common high-rise residences today, sky garages appear to embody the human desire for novelty and exclusivity. Even those whose address lies in the prestigious urban areas of the city can’t always claim that they have the luxurious convenience of being able to drive straight to their doorstep, as landed homes are increasingly a rarity given spiralling land costs today. 

Additionally, many sky garages are separated from the living rooms of their respective apartment units by only a glass panel, allowing their owners to show off their sexy Aston Martins or shiny Lamborghinis whenever guests are around. “It is nice especially for those car lovers who can see their nice vehicles from the living area,” comments Metro Homes chief See.

The aesthetics extend further, in fact, to the building design itself. “Sky garages reduce the levels of car park podium required as garages are located inside the unit itself or next to it,” explains See. “The building in fact is nicer this way, rather than our conventional five levels of car park podiums before reaching the facilities floor followed by the typical layout floor.”

Incorporating such a feature does not seem like an especially difficult undertaking for any willing developer. According to Ar Dr Tan Loke Mun, Director of ArchiCentre, the only special consideration in the process is the “vertical transportation lift to carry the car.” Such a consideration, says realtor See, is not a problem for today’s technology but he also adds that its pros and cons as well as potential long-term benefits warrant consideration before implementing the concept.

The concept is not without critics, however, perhaps given the subjective nature of its value to homeowners. “Why would you need to have a car garage high up in the sky?” asks Dr Tan, who is also Past President of the Malaysian Institute of Architects. “It is totally not in line with the current trends and growing awareness of sustainability and green.”

Indeed, in light of the growing preference among homeowners towards green and energy-efficient home features, the additional costs required for sky garages appear forefront on the list of negatives when it comes to sky garages. “They are costly to build and maintain as it involves a mechanical system to lift the car up to the upper levels,” remarks See. “It also takes a longer time to move the car to/from the garage especially during peak hours.”

In addition to the sheer cost of building and maintaining the facilities, risks also appear greater in the event things go wrong — a malfunction may see your supercar stuck on the 20th storey just when you needed to drive somewhere urgently. Security also comes into consideration if the residential unit concerned is rented and not owned, according to See of Metro Homes. “It can be dangerous too because if any accident occurs, the entire building might be at risk.”

Trend or fad?
Looking at developments featuring sky garages around the world, it appears to be the realm of the uber-rich as most of the developments have very low density as well as expensive price tags — 200 11th Avenue in Manhattan is a 19-story building consisting of a mere 14 units, which have sold for between US$3 million (RM9.12 million) and US$32 million (RM97.28 million). Hamilton Scotts in Singapore has 56 units comprised within 30 storeys with prices starting at SG$7.9 million (RM19.45 million).

With Malaysia set to see its first residential development featuring sky garages in Iskandar, Johor, will sky garages become more commonly offered in Malaysia as the next main selling point for high-end projects?
“I believe it would start as a mere luxury feature for the next 5 –10 years. Once we have a proven and established system for sky garages, then more developers might adopt the concept,” opines See from Metro Homes. “Even if it is implemented, it will mostly be located in the downtown high-end areas where land is limited or where there are few constraints in its implementation. Otherwise, most builders would still be happy with conventional parking facilities.”

Indeed, increased costs for incorporating the feature as well as the design considerations and other factors mean sky garages may be more trouble than it is worth for most developers in Malaysia. This means sky garages may not become more than an expensive rarity occasionally found in selected exclusive developments. However, it is interesting to note that a similar concept of using lifts to move vehicles to and from the car park podium is already seen in Malaysia such as in Menara Genesis in Kuala Lumpur as well as the upcoming Times Avenue Tower, which is set to feature the country’s first fully automated valet parking system.

“There are vertical car parking ‘silos’ that have been used in city centres with limited land such as in Seoul, Korea. But for condos, it is just a novelty,” says Dr Tan from ArchiCentre, who is also an Adjunct Professor in Architecture at Universiti Putra Malaysa. “The only valid reason that I can think of is if you were super concerned about security and privacy such as if you were Batman!”

Future of sky garages?
Practicality aside, the fact remains that those who can afford it enjoy the novel concept of being able to park at one’s own doorstep while living in a high-rise. Asians are no exception, based on Hamilton Scotts in Singapore which sold well, says See.

Value-wise, how much does a sky garage influence the pricing of the entire unit and its price appreciation potential?

“It is very difficult to put a value to it because luxury items and new innovations cannot be valued based on past history as it does not have any prior benchmark,” elaborates See. “For sure, the developer would sell the garage as part of the building built-up unlike accessory parcels in a conventional condominium. The cost of maintaining the mechanical system will be borne by all residents alike similar to common properties within the condo.”

It should be noted that sky garages are basically parking facilities and therefore may not have the same per square foot valuation as the rest of the actual accommodation. Not that it would matter much to those who can afford such properties. For them, no price is too high for the convenience of doorstep parking or pride of owning a sky garage in the middle of a densely populated urban area.

“It will be good to see how it will be implemented in Malaysia,” See of Metro Homes says. “It will definitely attract the elite group of the society and car lovers.”

On the other hand, architect Dr Tan is averse to the concept, seeing it as a step in the wrong direction. “I would not do it as I am waiting for the day when cars get restricted from entering communities and cities. Hopefully, one day the car will be made obsolete when all buildings in cities become fully interconnected and linked with an integrated public transportation system.”
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En-suite parking facilities bring back the ‘home’ feel that comes with being able to park right outside where you live.
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Car lifts that bring both driver and car up together allows you to drive up to your doorstep as if living in a landed home.

SKYROCKETING PRICES: Prices of high-end condos in the KLCC area continues to scale new heights. Could it breach the RM5,000 per sq ft mark?


New record
Amidst the slower property market, a segment of the market namely, the high-end luxury condos or super penthouses has continued to defy market expectations with prices hitting the roof. The market was abuzz with news last week that two units of 11,900 sq ft penthouses at Four Seasons Place in the KLCC (Kuala Lumpur City Centre) area were being booked at a new record price of RM37 million per unit which works out to a stunning RM3,026 per sq ft. The previous record was held by the Binjai On The Park at RM2,900 per sq ft which were also super penthouses in the KLCC area.

These eye-catching figures beg the question – are these one-off, isolated cases or will prices of luxury condos, especially in the KLCC area, continue to go through the roof? Gavin Tee, Founder and President of SwhengTee International Real Estate Investors Club forecasted in 2011 during one of his property seminars that prices of luxury condos in Kuala Lumpur might hit RM5,000 per sq ft by 2016. Commenting on last week’s Four Seasons Place transaction, he is the least bit surprised by this phenomenon and continues to hold on to his belief that prices of luxury condos in KLCC area will rise even further.

Breaching RM5,000 psf?
According to Tee, Greater KL is set to become an international property hotspot by 2015 and prices will definitely heat up in a couple of years’ time. “What I said in early 2011 still stands. I believe that with the expected booming of the overall property market in Greater KL in a few years’ time, condominium prices in KL will likely hit record prices by 2015. I had predicted prices of premium condos to breach the RM5,000 per sq ft mark by 2016 but it could reach that price level much earlier, or even go beyond that if the property market really takes off.”
Touching on the inevitable subject of the coming general election and its potential impact on the property market, Tee remains optimistic by pointing out that although the property market in KL has slowed down a bit recently, prices of exclusive projects such as the Four Seasons Place are still picking up. “2013 is election year. I think it will take a bit of time for the Malaysian economy to move into gear post-election, probably up to six months. Nevertheless, a lot of infrastructural projects such as the MRT (Mass Rapid Transit) are already being executed while blueprints for big projects such as the TRX (Tun Razak Exchange) are in the pipeline. Many major foreign investors are waiting to come in by the end of the year while waiting for the new government to settle in with their new teams, cabinets and policies, ” continues Tee.

Tourism factor
To a certain extent, Tee says that this period of settling-in by the new government, regardless of which party wins, will also slow the pace of the property market somewhat in the short-term but he points out at another factor – the growth of the tourism industry - that supports his firm belief that prices of luxury condos will continue its upward trend in the long run.

“Malaysia’s tourism is one of the fastest growing industries in the country. In fact, if you consider some of the high-end serviced apartments in major tourist attractions like Pangkor Island or Cameron Highlands, rental rates for some of these serviced apartments or hotels have increased a lot in the past few years and are continuing to rise. Rentals can go up to RM1,000 per night, or even higher during peak season. So, if you calculate based on an estimate of 6 per cent rental yield, translated into real terms, some of these apartments may already have hit RM5,000 per sq ft,” explains Tee.

Premium brand
See Kok Loong, Director of Metro Homes Sdn Bhd agrees with some of Tee’s assessment of the high-end condominium market. “I think it’s a fantastic development and especially with a renowned brand like Four Seasons Place, it can only be a good thing because it gives a certain aura or cachet to the local property market. The property owner is also assured of high quality and standards associated with a premium brand,” says See.

The realtor adds that some of the market factors driving the prices of these luxury condos are inflation, the MRT and other future infrastructural projects such as the proposed High- Speed Rail (HSR) link between Kuala Lumpur and Singapore. See says that prices of luxury condos, as shown in last week’s Four Seasons Place transaction, would highly likely continue to rise although he is less certain than Tee as to whether it might reach the RM5,000 per sq ft mark.

“It will be difficult to reach RM5,000 per sq ft level but the price would probably hover around RM3,000 to RM4,000 per sq ft, mainly due to the rising construction costs and shortage of land at prime locations.”
According to See, he does not see the bubble bursting on the prices of these luxury condos any time soon because “they are premium, branded products and are usually sold to high net-worth clients with long-term holding power. With the increasing globalisation of the economy, we should be attracting more investors and property buyers from other parts of the world like Hong Kong and Singapore. Only by doing this would we be able to sustain prices at these levels,” observes See.

Mismatch in rental?
Nevertheless, there are those who prefer to temper expectations that are bound to rise with these recent developments and are cautious about the spiralling prices of high-end condos which they opine is not a good general gauge or reflection of the overall property market.

Ishmael Ho, Director of Ho Chin Soon Research comments that the sale of the penthouses at such ‘astronomical figures’ is not a surprise because in terms of value, the KLCC area is currently where many high-end property purchases are concentrated. But will prices move even further upwards? “I don’t know. Value is always relative in that sense. The main question is who are the people setting such prices? People who are buying in these areas are not your average purchasers - they are cash-rich. They can buy and hold. Whether it will set a benchmark or not, I don’t know,” says Ho.

Datuk Ng Seing Liong, Managing Director of Kota Kelang Development Sdn Bhd also echoes these sentiments. “To me, whether the prices will increase or not will depend on whether there will be rentals to match these kinds of prices. I always look at yields and returns as they are fundamentally important. If there are no returns, it will be difficult to sustain these price levels,” Ng says, adding that the property market in KLCC is very speculative. - Additional reporting by Khairie Hisyam Aliman
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Friday 26 April 2013

Home prices to rise 10-15%



By Farah Wahida:

Prices of residential properties in Malaysia are expected to increase between 10 percent and 15 percent this year, said C H Williams Talhar and Wong Sdn Bhd (WTW), a real estate service firm.

According to WTW’s Managing Director Foo Gee Jen, sales of new housing projects will be sustained this year thanks to robust demand for residential properties.

“Areas of high demand will be close to the high-level infrastructure projects such as Mass Rapid Transit (MRT), Light Rail Transit (LRT) and Komuter train lines,” he told the media during the launch of the WTW‘s Property Market Report 2013 yesterday.

“A big volume correction will be seen this year. House prices will remain generally flat but prices could face upward pressure from rising materials prices and other cost-push factors,” Foo said.

At the same time, landed residential segment is predicted to remain resilient with stable growth. However, developer could launch fewer units with higher prices, in an effort to sustain profit margins and test consumer reaction.

“In tandem with that, they are putting in more eco-friendly and green building features as an added value to the projects,” noted Foo.

“We have seen developers veering away from high-end niche developments and switching to more mid-range products in tandem with the government's PR1MA scheme.”

Meanwhile, the outlook for the mass-market residential segment is very positive.

“We can expect units in this segment to continue to find a ready market.  High-end residential properties continue to sell well in the major cities of Johor Baharu, Kuala Lumpur, Kota Kinabalu and Penang.”

“We can expect with the seemingly strong demand, prices may be pushed upwards,” Foo added.

Wednesday 17 April 2013

Malaysian fashion icon buys RM4.4m mansion



By Farah Wahida:

Datuk Jimmy Choo, a fashion designer who created shoes for the UK’s royalty and superstars, has recently purchased a RM4.4million townhouse in his home state of Penang, reported The Star.

“This is the first property I have purchased here since I left for Britain as a child. I’m buying a townhouse as my Penang residence.”

“Now that I will have a home in Penang again, I intend to invite all my superstar friends to visit my hometown,” he exclaimed enthusiastically.

Located near Pulau Tikus’ market, the four-storey townhouse is one of the 20 exclusive units offered at The Yeangs Sdn Bhd’s palatial project. Dubbed as the Y Cantonments, the development is expected to be completed by 2015.

Choo’s six-bedroom mansion will come with a rooftop garden and a private elevator made from glass, while the master bedroom will occupy the entire third floor. The townhouse, which has an area of nearly 2,000 sq ft, will also feature a plunge pool as well as an open-air shower and deck.

According to Choo, he chose Y Cantonments due to the project’s sustainable design.

“I am attracted to the eco-friendly elements in the architecture such as the rainwater harvesting system and low energy design,” said Choo, adding that he is on the lookout for several other properties in the state.

Moreover, “Penang has the potential to grow into a world-class economic and education centre,” he added.

Dijaya eyes new RM6.8b township in Selangor



By Farah Wahida:

Property developer Dijaya Corp Bhd eyes to launch a new RM6.8billion township in Canal City, Selangor, reported The Sun Daily.
In line with this, Dijaya’s unit Sapphire Index Sdn Bhd, yesterday entered into a deal with Permodalan Negeri Selangor Bhd (PNSB), to acquire 11 parcels or 1,172 acres of land for RM1.3 billion. The acquisition will likely be completed in Q3.

Datuk Dickson Tan, Group Managing Director at Dijaya, said that “with strong prospects for capital appreciation due to excellent accessibility, this project can potentially generate a GDV of up to RM20 billion when fully completed over its 15- to 20-year targeted development timeframe.”

To be funded by internal funds and bank borrowings, the acquisition and development will “serve to further strengthen Dijaya's presence in the three key growth regions of Malaysia, namely Johor, Greater Kuala Lumpur and Penang,” noted Tan.

The planned township will include landed homes, serviced apartments, condominiums, corporate office towers, shop offices, private hospitals, international schools and shopping malls.

Aside from that, there will also be continuous vehicular free bike trails and jogging paths, central linear parks and lakes, children's playgrounds, kindergartens, community clubhouses and sports centres.

“It will become a key destination for people seeking a wholesome and balanced lifestyle,” added Tan.

Meanwhile, Dijaya Group CEO Datuk Yau Kok Seng noted that the acquisition is significant “for the group as large tracts of land in the Klang Valley with immediate development potential are fast becoming scarce.”

“The land neighbours established townships including Putra Heights, Kota Kemuning and also the up and coming Bandar Rimbayu which caters to middle and upper class income earners.”