Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Saturday, November 28, 2009

Property launches do well for this year

The capital values for high end condominiums in quarter three (Q3) this year are currently still hovering close to the original purchase prices, albeit with a small premium.

Regroup Associates Sdn Bhd executive director Paul Khong tells StarBizWeek via e-mail that new launches during this year has done fairly well with at least 50% sales or more.

“The demand which headed upwards earlier this year was due to the perception of an uptrend in the economy and the availability of low financing rates locally,” he says.

He further says that prices range from RM1,000 to RM1,300 depending on projects located on the fringe of KLCC. The best ones are now changing hands at RM1,600 per sq ft to close to RM2,000 per sq ft.

“Generally, the market took a sudden upturn from quarter two this year till mid of quarter three. Sales of condominiums which were within the affordable range of RM1mil to RM2mil per unit price took of well. Sales were brisk. For example, St Mary, SP Setia’s Sky Residence and few others,” he says.

Khong adds that enbloc purchasers are also reselling their units in KL Pavilion. Generally, sales are going well with more than 50% done.

“However, by mid September, the demand has weakened and sales have slowed down and this trend is expected to carry through to the holiday seasons,” he says.

On the real property gains tax (RPGT) to be imposed by the Government in January next year, Paul says the introduction of RPGT at 5% will obviously have a negative impact.

“It has drawn mixed reactions from the market and many parties view that this move will dampen market sentiments,” he says.

Paul adds that although it is intended to curb speculation, the impact will only be seen in the next six months.

“Many property owners will now rush to sell off their investments within the next 18 weeks or so to escape the RPGT.

On the regional investment market, Malaysian properties will now be less attractive as any gains obtained from disposal will be taxed,” he says.

He further says that the local market rallied when RPGT was temporarily suspended in March 2007. Prices in KLCC and Mont’Kiara shot up substantially.

“But by Q3 2008, all the premiums gained earlier have virtually disappeared,” he says.

Meanwhile, property developer Naza TTDI Sdn Bhd marketing & sales and quality assurance senior general manager Myrzela Sabtu tells StarBizWeek through an e-mail that the performance outlook for high end properties is neutral to positive.

“Factors include better economic performance outlook, favourable interest rates, strong commodity prices, more optimistic sentiment for next year, strong employment figures and better stock market performance,” she says.

She adds that in the case of Naza TTDI, the demand for their high end properties are well-received based on their strong following, a substantial number of repeat buyers, appreciation value of the houses, quality and good after sales service.

“Strategies that are being undertaken to increase sales is to make it easier for customers to purchase properties such as zero entry cost and no stamp duty, value for money and the property is built to advance stage before launch to reduce holding period,” she says.

Naza TTDI’s current high end residential projects among others is the The Valley TTDI in Ampang.

DTZ research report for Q3 says that market confidence is being restored for residential sector with stronger take up in the new launches and increased transaction in the secondary market.

DTZ consulting and research executive director Brian Koh says that prices are stable in Q3 but would face pressure, as there is still substantial new supply pending completion.

“There are also some tentative signs that foreign buyers are trickling back into the market due to the deregulation of foreign investment committee (FIC) guidelines announced on June 30.

In the new guidelines, all properties transactions, including those between foreigners and “non-bumiputra” will no longer require FIC approval except for transactions that involve a dilution of “bumiputra” or Government interest for property valued at RM20mil and above,” he says in the report.

He further says that Pavilion Tower which was recently completed and soft launched in August is well received with prices that are about 30% higher than Pavilion Tower 2 which was launched and fully sold three years ago.

Generally, he says that there is relief from the market that worst may be over although it may be too early to ascertain given current experts views on truncated “V” or “W” shape recovery.

By The Star (by Edy Sarif)

Think critically when you buy that house

Two weeks ago, we ran a piece on the importance of looking at details over and above location, pricing and the reputation of the developer. The piece highlighted the importance of installing smoke detectors, a sprinkler system and an adequate number of lifts in a condominium development.

A developer who is building a 38-storey condominium in SS2, Petaling Jaya called to say that the high-end project will have three lifts, instead of two as published.

Here is some food for thought. Another developer will be launching a 20-storey Bukit Jalil project comprising several blocks on 2.5 acres. It will be a high density project and each block will have three lifts.

A 20-storey condominium project in Kepong, Kuala Lumpur, launched in 2003, also has three lifts. The same developer is now building a 40-storey building. It will have four lifts and one service lift.

As a developer builds upwards, access becomes increasingly important. That is why some very high-end projects around the KLCC city centre has their own private lift lobby with one or two lifts serving one single unit.

It is up to buyers to press developers to have a variety of foliage.

When one considers buying into a condominium project, one pays a premium for the higher floors. The view tends to be better as one goes higher, it is cooler and there are less mosquitoes. While there are advantages of buying into a higher floor, this should be balanced with accessibility.

If you have the resources to buy the penthouse, should you not consider the accessibility to get your basement car park or to level ground? The lift is the only way. You are already paying a premium for that unit and you are already compromising by sharing the lifts with everyone who lives below you. Hence, the number of lifts that the project has is very important, especially if you are going to be at the very top.

From the penthouse, we take the lift to the basement car park. Although this may be a strata-titled project – it is gated and guarded – the basement car park can be a security issue. Buyers tend to be enchanted with the show unit with no consideration for the car park.

If the project is already built, check out the basement parking. Does it have a high-ceiling? Is it well-lit and airy? Are there many nooks and corners that allow people to hide in shadows? Are the parking bays large enough or is it a tight squeeze for larger sedan?

It would be a good idea to ask for a copy of the basement car park plan and imagine the route from the lift lobby to your parking bay.

If there are elderly or wheel-chaired family members who will be living in the condominium unit, they will have problems if they have to manoeuver a flight of stairs, or even several steps, to get to the parked car.

This takes us to the importance of a project having a pick-up and drop-off points. Having a nice high-ceiling lobby may be impressive, but is there a large enough area where your family members and friends can collect you or drop you off with no hassle? Or will you have to walk to the security guard house and wait?

Since we are considering the amenities outside the building, something has to be said about landscaping. There was a time when palm trees were very popular. It makes no sense to plant trees which shed their tiny leaves near a pool. However, developers’ enchantment with palms is something that has to be weighed. Developers tend to like palms instead of trees which shed their leaves daily. While palms are easier to maintain as the fronds do not shed weekly and because the fronds come in one piece, they are easily picked up and thrown away.

While some consider them aesthetically pleasing, they are not shady. Some high-rise projects today come with a landscaped park.

It makes no sense to have a one-acre park planted with just palms. It is up to buyers to press developers to have a variety of foliage, and that includes large trees which provide shade, as well as shrubs.

By The Star (by Thean Lee Cheng)

Ascott aims to double portfolio here to RM1b

The Ascott Group Ltd, the hospitality arm of the Temasek Holdings-controlled CapitaLand Ltd, aims to double its asset portfolio in Malaysia to more than RM1 billion by 2013.

Its Malaysian assets are currently worth around RM500 million, said Ascott managing director for Southeast Asia and Australia, Alfred Ong.

They include Ascott Kuala Lumpur, Somerset Seri Bukit Ceylon and Somerset Ampang.

Somerset Ampang comprises a 21-storey serviced residence of 207 units, which will house the HSC Medical Centre in the first eight floors.
The RM160 million project is scheduled to be completed by end-2010.

Ascott also owns and/or manages Somerset Gateway in Kuching, Sarawak.

Under its corporate leasing division, it manages 68 apartment units in Seri Bukit Ceylon Residence and Marc Residence in Kuala Lumpur.

By the third quarter of 2010, it will start to manage 147 units of Tiffini by i-Zen in Mont' Kiara, KL, a development by Ireka Group, which is slated to be completed by first half of 2010.

"We have several other projects in the pipeline in Malaysia. We are in the final stages of negotiation with the respective developers for management contracts," Ong said in an interview with Business Times in Kuala Lumpur.

"We are looking into new frontiers like Penang and Petaling Jaya and making a stronger presence in Malaysia," he added.

Ascott recently inked a deal with GSB Sentral Sdn Bhd to manage the 21-storey serviced residence tower at 348 Sentral at KL Sentral, a transport hub in Brickfields.

GSB, a joint venture between Malaysian Resources Corp Bhd and Gapurna Sdn Bhd, is developing the energy efficient 348 Sentral for RM1 billion.

348 Sentral will also feature a 33-storey office tower but this will be managed by GSB.

The 348 Sentral project is schedule to be completed by the third quarter of 2012 and Ascott will manage the serviced residence for 15 years from then.

Ong said the serviced residence will strengthen Ascott's leadership position in Malaysia and increase its portfolio to 1,000 apartment units.

"If there is an offer from GSB to manage the office tower, we will consider it. For now, we will focus on getting new jobs in Malaysia," Ong said.

By Business Times (by Sharen Kaur)

RM100m hospital for Ara Damansara

The new hospital, part of Sime Darby's vision in becoming a formidable healthcare player in Malaysia, is expected to be completed by 2012

Malaysia's largest conglomerate Sime Darby Bhd will build a new RM100 million hospital at its residential development in Ara Damansara, Selangor, bringing the group's total number of hospitals in the country to four.

The new hospital is expected to be completed by 2012.

An industry source said the new hospital is part of Sime Darby's vision in becoming a formidable healthcare player in the country and the region.

"The new hospital in Ara Damansara will be known as the Sime Darby Medical Centre Ara Damansara. Sime Darby is intensifying efforts to bolster its healthcare business division, where the segment is very competitive but recession-proof, enabling the group to earn an income even during economic hard times," the source said.
Analysts see the new hospital as part of Sime Darby's long-term plan to grow its healthcare business, which together with general trading and other business account for about 10 per cent of the group's revenue.

Sime Darby currently operates two hospitals and a nursing college in Selangor. They include the 393-bed Sime Darby Medical Centre Subang Jaya (formerly Subang Jaya Medical Centre) and the Sime Darby Specialist Centre Megah, which is a day-surgery and outpatient specialist centre, in Petaling Jaya.

It also owns and operates the Sime Darby Nursing and Health Sciences College in Shah Alam, which is managed by its healthcare arm Sime Darby Healthcare Sdn Bhd.

The group is also in the midst of building the 350-bed Sime Darby Medical Desa Park City in Desa Park City, near Bukit Menjalara, Kepong, Kuala Lumpur which is scheduled to be completed in 2012 at a cost of RM350 million.

In its filing to Bursa Malaysia on October 26, Sime Darby had announced the setting up of Sime Darby Medical Centre Ara Damansara Sdn Bhd which at present is a dormant company.

It bought two ordinary shares of RM1 each in Sime Darby Medical Centre Ara Damansara, which represents the latter's total paid-up capital.

Sime Darby had said Sime Darby Medical Centre Ara Damansara will be involved in healthcare facility services management and other healthcare-related services.

On Wednesday, during the announcement of the group's first-quarter results ended September 2009, Sime Darby president dan group chief executive Datuk Seri Ahmad Zubir Murshid had said that healthcare business is now one of the conglomerate's core businesses.

Its other businesses are plantations, automotive, heavy equipment, property, energy and utility, spanning over 20 countries.

"The healthcare business is growing rapidly and we will continue to bolster this sector. We expect to own two new hospitals in the next two years," Ahmad Zubir had said.

Apart from Malaysia, the healthcare business division managed by its healthcare arm Sime Darby Healthcare also aims to expand its operations overseas, especially in Asia, over the next three years.

It now has a presence in Indonesia, Vietnam, the UK and the US.

By Business Times (by Zaidi Isham Ismail)