KUALA LUMPUR: Prices of condominiums in the luxury Kuala Lumpur City Centre (KLCC) enclave could fall as much as 30% as waning demand erodes sellers' bargaining power to dictate prices, according to real estate consultancy Rahim & Co Chartered Surveyors Sdn Bhd.
This comes against the backdrop of a real estate sector downcycle in the country amid a global economic slowdown which has curbed demand for local real estate among local and foreign buyers.
"I think the worst scenario would be a 25% to 30% decline for KLCC condominiums. Fortunately, at least for now, property prices in Malaysia have not dropped at the pace seen in London, Hong Kong and Singapore," Rahim & Co executive chairman Datuk Abdul Rahim Rahman told reporters at a real estate seminar organised by the firm here on March 3.
The KLCC enclave where the iconic Petronas Twin Towers sits has been a popular real estate spot for foreign buyers in recent years when asking prices had reached RM2,000 per sq ft.
Across the globe, real estate prices at places like London, Hong Kong and Singapore had fallen some 45% across the board, according to the real estate expert who founded Rahim & Co in 1976.
Existing macro dynamics are expected to weigh on Malaysian property prices. This is against a backdrop of rising unemployment and tighter financing policies which could erode consumers' purchasing power.
Waning demand aside, massive supply of properties from aggressive launches in previous years is also expected to contribute to the ongoing downcycle in the local sector.
Based on OSK Research Sdn Bhd's estimates, more than 5,000 units of luxury condominiums are expected to hit the Klang Valley market this year.The number is, however, expected to ease to about 2,000 units the following year.
Existing supply and demand forces in the home property sector are expected to translate into lower rental yields, hence limited capital appreciation and falling real estate prices.
Such a backdrop could prompt investors and speculators to exit the market, and keep end-users on the sidelines, therefore, further curbing demand for real estate, and fuelling the decline in property prices, according to OSK.
By The EDGE Malaysia (by Chong Jin Hun)
Tuesday, March 3, 2009
UDA plans RM111m mall, hotel investment in Malacca
PROPERTY firm UDA Holdings Bhd is investing RM111 million to build a Street Mall and a four-star hotel in Malacca.
It has bought a 1.48ha land on Jalan Tun Ali for RM11 million from the Malacca state government and will spend another RM40 million to develop the hotel, which will be managed by its hotel management arm Ancasa Hotel & Spa. There are currently three local hotels under the Ancasa banner.
The remaining RM60 million is the gross development value for the Street Mall, which will have about 100 shoplots.
"We expect the hotel's return on investment to come in between six-and-a-half years and seven years," said UDA managing director Datuk Jaafar Abu Hassan at a signing ceremony in Kuala Lumpur yesterday.
Also present were Malacca Chief Minister Datuk Mohd Ali Rustam and Entrepreneurs and Cooperative Development Minister Datuk Noh Omar.
The company has engaged retail consultant, Henry Butcher to oversee the development of the mall.
Construction of the project is expected to start in September and is targeted for completion by 2011.
Jaafar said UDA is also in discussion to develop phase two of the Street Mall.
It was earlier reported that the group plans to double its landbank in the country to about 800ha to develop hotels and shopping complexes.
It is eyeing land in Kuala Terengganu, Johor Baru and Kuantan for hotel development and Malacca and Kuantan for commercial complexes.
Noh Omar said the development of the street mall by UDA, an agency under his ministry, will encourage more Bumiputera to be business owners.
"The Street Mall is located in the city centre and is near the UiTM Malacca campus. It is a vibrant area with high traffic, definitely a good business area," he said.
UDA, which owns and operates malls, rents out space to small Bumiputera businesses at subsidised rates and leases are renewed every two years.
By Business Times (by Zurinna Raja Adam)
Second Penang Bridge costs to remain RM4.3b
KUALA LUMPUR: The Second Penang Bridge project will remain at RM4.3 billion despite the fall in oil prices and it is on track to be completed by mid-2012, the Dewan Rakyat was told.
The Deputy Minister in the Prime Minister's Department Datuk S.K. Devamany said on March 3 the contractual cost was fixed at RM4.3 billion while there could be variation in prices for several items.
The contract for the superstructure was awarded to UEM Builders Bhd subject to a final agreement with Jambatan Kedua Sdn Bhd (JKSB).
He added the land highway package would be implemented via an open tender, adding JKSB was preparing the tender documents.
"As of now, there is some delay in the implementation of the project as the contractor involved has not been able to enter the construction site at Batu Kawan," Devamany told the House when answering a question from Lim Guan Eng (DAP - Bagan).
Lim had asked the Prime Minister to state the status of the tenders for the superstructure and the land highway packages in the Second Penang Bridge and whether the cost of the project would be reduced due to the drop in oil prices.
Devamany said the Federal Government would finalise the negotiations with the Penang state government and the would-be affected clam breeders on the compensation.
He expected the contractors to start work early this month once JKSB had compensated the clam breeders for vacating the site.
"Nevertheless, the delay to the work schedule is not worrying as it is not expected to affect the completion date of the Second Penang Bridge by middle of 2012," the deputy minister noted.
According to Devamany (BN - Cameron Highlands), the RM4.3 billion construction cost did not include the RM110 million to reclaim the land, RM100 million to compensate the fish and clam breeders, and development cost of some RM285 million.
He added a special purpose vehicle set up by UEM Group Bhd would finance the project via loans from China ExIm Bank and Bank Pembangunan Malaysia Bhd as well as equity contribution by the UEM Group.
"The loan of US$800 million (RM2.8 billion) from China ExIm was based on a low and irresistible interest rate of 3%. This is far lower that than what was offered by the local capital markets and other financial institutions" he added.
Devamany said the loan from Bank Pembangunan Malaysia was RM1.4 billion while equity contribution by the UEM Group amounted to RM50 million, adding the government would bear the remaining RM260 million in financing.
By The EDGE Malaysia (by Yong Min Wei)
The Deputy Minister in the Prime Minister's Department Datuk S.K. Devamany said on March 3 the contractual cost was fixed at RM4.3 billion while there could be variation in prices for several items.
The contract for the superstructure was awarded to UEM Builders Bhd subject to a final agreement with Jambatan Kedua Sdn Bhd (JKSB).
He added the land highway package would be implemented via an open tender, adding JKSB was preparing the tender documents.
"As of now, there is some delay in the implementation of the project as the contractor involved has not been able to enter the construction site at Batu Kawan," Devamany told the House when answering a question from Lim Guan Eng (DAP - Bagan).
Lim had asked the Prime Minister to state the status of the tenders for the superstructure and the land highway packages in the Second Penang Bridge and whether the cost of the project would be reduced due to the drop in oil prices.
Devamany said the Federal Government would finalise the negotiations with the Penang state government and the would-be affected clam breeders on the compensation.
He expected the contractors to start work early this month once JKSB had compensated the clam breeders for vacating the site.
"Nevertheless, the delay to the work schedule is not worrying as it is not expected to affect the completion date of the Second Penang Bridge by middle of 2012," the deputy minister noted.
According to Devamany (BN - Cameron Highlands), the RM4.3 billion construction cost did not include the RM110 million to reclaim the land, RM100 million to compensate the fish and clam breeders, and development cost of some RM285 million.
He added a special purpose vehicle set up by UEM Group Bhd would finance the project via loans from China ExIm Bank and Bank Pembangunan Malaysia Bhd as well as equity contribution by the UEM Group.
"The loan of US$800 million (RM2.8 billion) from China ExIm was based on a low and irresistible interest rate of 3%. This is far lower that than what was offered by the local capital markets and other financial institutions" he added.
Devamany said the loan from Bank Pembangunan Malaysia was RM1.4 billion while equity contribution by the UEM Group amounted to RM50 million, adding the government would bear the remaining RM260 million in financing.
By The EDGE Malaysia (by Yong Min Wei)
Saturday, February 28, 2009
A long and tedious road ahead
It’s the results season again and the numbers rolled out by property companies are rather disappointing and point to poor take-up and an overall gloomy backdrop for developers.
Most of the companies recorded a huge drop in sales, some by more than 50%, in their latest financial quarter compared with the same period in the previous year.
The results are at least 5% below street estimates despite them having downgraded the sales and earnings expectations of property companies for the last two quarters since the middle of last year. Delays in construction works and slow sales are among the main culprits for the weak numbers.
While potential buyers are taking longer to decide or even deferring their decision to commit to any major purchase, including buying a house for now, given the prevailing gloomy outlook in the economic front, most developers are also holding back project launches as they worry about low take-up rate.
The extent of the adverse impact on developers depends on a few factors - size of unbilled sales carried forward from previous years, financial strength, creativity and product mix in their portfolio.
Although the high unbilled sales, especially from record sales in 2007, are still contributing to the financial books of developers this year, they will be depleted soon if sales continues to slow.
This year and to a certain extent 2010, property companies are still expected to turn in decent earnings due to the large unbilled sales brought forward from the last two years.
However, if launches continue to be deferred and plummeting sales do not bottom out, earnings contraction post-2010 could kick in.
Unless developers become more proactive and creative by adding more value and tweaking their product offerings to meet the changing market conditions, they will be in for many more quarters of underperforming results.
Special promotions and easier payment packages by some developers have proved to be effective so far and contributed to higher sales for them. The right product mix is also important. Developers that are catering to the mass market and building more affordable housing are still recording quite decent sales while those with more high-end products are not as lucky this time.
While Malaysia has been spared a hard landing unlike most of the developed economies which were hit almost instantaneously by the US-led global financial crisis, the poor financial results being unveiled show that the widening impact of the global financial crisis is already at Malaysia’s doorstep.
Going by the extent of damages reported across the length and breadth of the globe, it will be a long and tedious road ahead for Malaysians.
As one CEO puts it, it is now a question of survival for most companies and not about how much profit they are going to make.
Companies have either drastically cut down on dividend payment or are not declaring dividend at all, in their quest to conserve cash for more rainy days ahead.
Whether the prevailing low interest rates will be effective in reining in the slide in domestic demand and economy is left to be seen, especially when prices of food and fuel are still high, while the people’s confidence is at its ebb.
Besides providing a lifeline to the various business sectors, the Government’s second stimulus package, or mini budget, to be unveiled on March 10, should focus on offering some direct benefits to the people to tide over their dire straits caused by the global financial upheavals.
The focus should be to reach out to the people, especially the lower income group, including those who have recently lost their jobs due to companies that have downsized or ceased operations.
To promote home ownership among the people, it will be most beneficial if the Government is able to meet the request by the Real Estate and Housing Developers Association to give a RM10,000 grant to first-time house buyers of property priced below RM300,000. Granting full stamp duty exemption for property transactions will also be another effective measure to lower transaction cost for the people.
·Deputy news editor Angie Ng hopes that by casting the stimulus net as wide as possible to reach the needy business sectors and the common folk, the Government’s money will be well spent when all Malaysians rally and work together for a fast track recovery of the economy. And the funds have to be disbursed quickly to be effective.
By The Star (by Angie Ng)
Most of the companies recorded a huge drop in sales, some by more than 50%, in their latest financial quarter compared with the same period in the previous year.
The results are at least 5% below street estimates despite them having downgraded the sales and earnings expectations of property companies for the last two quarters since the middle of last year. Delays in construction works and slow sales are among the main culprits for the weak numbers.
While potential buyers are taking longer to decide or even deferring their decision to commit to any major purchase, including buying a house for now, given the prevailing gloomy outlook in the economic front, most developers are also holding back project launches as they worry about low take-up rate.
The extent of the adverse impact on developers depends on a few factors - size of unbilled sales carried forward from previous years, financial strength, creativity and product mix in their portfolio.
Although the high unbilled sales, especially from record sales in 2007, are still contributing to the financial books of developers this year, they will be depleted soon if sales continues to slow.
This year and to a certain extent 2010, property companies are still expected to turn in decent earnings due to the large unbilled sales brought forward from the last two years.
However, if launches continue to be deferred and plummeting sales do not bottom out, earnings contraction post-2010 could kick in.
Unless developers become more proactive and creative by adding more value and tweaking their product offerings to meet the changing market conditions, they will be in for many more quarters of underperforming results.
Special promotions and easier payment packages by some developers have proved to be effective so far and contributed to higher sales for them. The right product mix is also important. Developers that are catering to the mass market and building more affordable housing are still recording quite decent sales while those with more high-end products are not as lucky this time.
While Malaysia has been spared a hard landing unlike most of the developed economies which were hit almost instantaneously by the US-led global financial crisis, the poor financial results being unveiled show that the widening impact of the global financial crisis is already at Malaysia’s doorstep.
Going by the extent of damages reported across the length and breadth of the globe, it will be a long and tedious road ahead for Malaysians.
As one CEO puts it, it is now a question of survival for most companies and not about how much profit they are going to make.
Companies have either drastically cut down on dividend payment or are not declaring dividend at all, in their quest to conserve cash for more rainy days ahead.
Whether the prevailing low interest rates will be effective in reining in the slide in domestic demand and economy is left to be seen, especially when prices of food and fuel are still high, while the people’s confidence is at its ebb.
Besides providing a lifeline to the various business sectors, the Government’s second stimulus package, or mini budget, to be unveiled on March 10, should focus on offering some direct benefits to the people to tide over their dire straits caused by the global financial upheavals.
The focus should be to reach out to the people, especially the lower income group, including those who have recently lost their jobs due to companies that have downsized or ceased operations.
To promote home ownership among the people, it will be most beneficial if the Government is able to meet the request by the Real Estate and Housing Developers Association to give a RM10,000 grant to first-time house buyers of property priced below RM300,000. Granting full stamp duty exemption for property transactions will also be another effective measure to lower transaction cost for the people.
·Deputy news editor Angie Ng hopes that by casting the stimulus net as wide as possible to reach the needy business sectors and the common folk, the Government’s money will be well spent when all Malaysians rally and work together for a fast track recovery of the economy. And the funds have to be disbursed quickly to be effective.
By The Star (by Angie Ng)
Brisk auctioning since downturn
Licensed auctioneer and auction firm Ng Chan Mau & Co Sdn Bhd general manager Foong Chon Wai’s schedule has been pretty tight since the beginning of the year and he is expecting to be even busier in the coming months.
“The number of properties up for auction has increased by 5% to 10% since September last year mainly due to foreclosures and we expect more to come as banks’ non-performing loans increase,” he says.
This could be the scenario going forward for the property auction business as the current economic downturn takes a toll on the ability of property owners to service their mortgages, resulting in more properties going under the hammer.
A sale by public auction is a way by which properties are put up for sale by their beneficial owners, usually a financial institution.
Prospective buyers for the properties will gather at the auction venue and put in their bids or offers for the properties that they are interested in.
The bidding will stop when the highest price is called out three times by the auctioneer when no further bids are made. The person who submits the highest bid will be declared the buyer for the property.
Foong, who has some 20 years’ experience in the auction business, expects to see an increase in lower-end properties (RM50,000 and below) coming up for auction in the coming months as the lower income group is the most affected by the economic downturn.
Leong Auctioneer Agency has also experienced an increase of 10% to 20% in the number of properties going for auction since October last year.
Owner and licensed auctioneer Leong Wye Hoong says more high-end condominiums, in the range of RM250,000, in the Kuala Lumpur city centre (KLCC) have been going under the hammer since the beginning of the year.
Many of the owners of the properties are expatriates who are looking to get rid of their properties while the prices are still high, he adds.
Condominiums in the KLCC vicinity are currently selling for RM1,200 to RM1,500 per sq ft versus RM700 to RM800 some three years ago.
“Prices for such properties have gone down by 10% to 20%. We have a handful of condominiums in the KLCC area up for auction next month and more may be coming up as borrowers default,” Leong cautions.
He foresees prices going down by as much as 30% for the condominiums, going forward, as supply currently exceeds demand and prices need to be low enough to attract bidders.
Nevertheless, Foong does not expect the price of certain properties such as landed residential properties, commercial properties such as shoplots and industrial properties, including factories and agricultural land, to come down as demand for such properties is still strong.
Properties which are not in demand in places such as Bukit Beruntung, Nilai, Rawang, Mantin and Bangi could see prices pushed down further, he notes.
“In the past two months, people have become more cautious when buying property. They do not simply buy properties anymore and will normally wait for the properties to hit below market price first.
“This year we expect properties which are not in demand, especially due to their locations, to go through two or three auctions before they start attracting bidders,” he says.
Properties going for first auction will have a reserve price that is the market value of the property but the price will decrease by about 10% in every subsequent auction if there are no takers.
“There are opportunities for buyers looking to pick up properties in an auction, especially in such bad times, as they may find a rare property which will not be auctioned in better times.
“Such properties will attract lots of bidders but if a buyer does not mind paying a bit more than the market price, he should be able to snap it up,” Foong says.
Leong concurs that not all auctioned properties would be priced below market value. “It all depends on the type of property and location. For example, a shoplot in SS2 Damansara could be snapped up at a higher price.”
Some auctions that Leong had handled recently even made quite a bit of profit for their owners – a shoplot in Bangsar generated a surplus of over RM300,000 from an auction while a piece of industrial land in Gombak made a surplus of over RM700,000.
Auctions have also become popular as people are more aware of the benefits of buying auctioned properties.
Foong believes that property buyers can get pretty good deals in terms of pricing via property auctions.
“Auctions also enable the transaction to be done in the open and in a very transparent manner,” he points out.
Leong says auctioneers are now more innovative in their marketing efforts to attract bidders to their auctions.
“We do not just put up notices in the surrounding areas of the properties but also distribute flyers, put up the property details on our website and even have roadshows to inform potential buyers of when and where a certain auction will take place,” he says.
A PUBLIC auction could be a way for property buyers to snap up properties at a bargain but the auctioneers’ advice is for buyers to do their homework first before buying an auctioned property.
Some of the factors to take note are:
Legal advice
Obtain a copy of the condition of sale and seek independent legal advice on it.
Property inspection
Prospective buyers should inspect the property they are interested in by looking at the external facade and location first. The property interior may not be available for viewing.
Vacant possession
It is not a requirement for auctioned properties to come with vacant possession.
Bank loans
Prospective buyers should consult banks on the loans available for the auctioned property to ensure that financing will not be a problem.
Title search
An official individual title search at the relevant Land Office or other relevant authorities should be conducted on the property to ensure that an individual/strata title has been issued and that there are no caveats attached.
Enquiries with developer
Make the necessary enquiries with the developer, proprietors and other relevant parties to confirm the terms and conditions of the sale such as whether the sale is open to all races or to Malaysian citizens who are bumiputras only.
By The Star
“The number of properties up for auction has increased by 5% to 10% since September last year mainly due to foreclosures and we expect more to come as banks’ non-performing loans increase,” he says.
This could be the scenario going forward for the property auction business as the current economic downturn takes a toll on the ability of property owners to service their mortgages, resulting in more properties going under the hammer.
A sale by public auction is a way by which properties are put up for sale by their beneficial owners, usually a financial institution.
Prospective buyers for the properties will gather at the auction venue and put in their bids or offers for the properties that they are interested in.
The bidding will stop when the highest price is called out three times by the auctioneer when no further bids are made. The person who submits the highest bid will be declared the buyer for the property.
Foong, who has some 20 years’ experience in the auction business, expects to see an increase in lower-end properties (RM50,000 and below) coming up for auction in the coming months as the lower income group is the most affected by the economic downturn.
Leong Auctioneer Agency has also experienced an increase of 10% to 20% in the number of properties going for auction since October last year.
Owner and licensed auctioneer Leong Wye Hoong says more high-end condominiums, in the range of RM250,000, in the Kuala Lumpur city centre (KLCC) have been going under the hammer since the beginning of the year.
Many of the owners of the properties are expatriates who are looking to get rid of their properties while the prices are still high, he adds.
Condominiums in the KLCC vicinity are currently selling for RM1,200 to RM1,500 per sq ft versus RM700 to RM800 some three years ago.
“Prices for such properties have gone down by 10% to 20%. We have a handful of condominiums in the KLCC area up for auction next month and more may be coming up as borrowers default,” Leong cautions.
He foresees prices going down by as much as 30% for the condominiums, going forward, as supply currently exceeds demand and prices need to be low enough to attract bidders.
Nevertheless, Foong does not expect the price of certain properties such as landed residential properties, commercial properties such as shoplots and industrial properties, including factories and agricultural land, to come down as demand for such properties is still strong.
Properties which are not in demand in places such as Bukit Beruntung, Nilai, Rawang, Mantin and Bangi could see prices pushed down further, he notes.
“In the past two months, people have become more cautious when buying property. They do not simply buy properties anymore and will normally wait for the properties to hit below market price first.
“This year we expect properties which are not in demand, especially due to their locations, to go through two or three auctions before they start attracting bidders,” he says.
Properties going for first auction will have a reserve price that is the market value of the property but the price will decrease by about 10% in every subsequent auction if there are no takers.
“There are opportunities for buyers looking to pick up properties in an auction, especially in such bad times, as they may find a rare property which will not be auctioned in better times.
“Such properties will attract lots of bidders but if a buyer does not mind paying a bit more than the market price, he should be able to snap it up,” Foong says.
Leong concurs that not all auctioned properties would be priced below market value. “It all depends on the type of property and location. For example, a shoplot in SS2 Damansara could be snapped up at a higher price.”
Some auctions that Leong had handled recently even made quite a bit of profit for their owners – a shoplot in Bangsar generated a surplus of over RM300,000 from an auction while a piece of industrial land in Gombak made a surplus of over RM700,000.
Auctions have also become popular as people are more aware of the benefits of buying auctioned properties.
Foong believes that property buyers can get pretty good deals in terms of pricing via property auctions.
“Auctions also enable the transaction to be done in the open and in a very transparent manner,” he points out.
Leong says auctioneers are now more innovative in their marketing efforts to attract bidders to their auctions.
“We do not just put up notices in the surrounding areas of the properties but also distribute flyers, put up the property details on our website and even have roadshows to inform potential buyers of when and where a certain auction will take place,” he says.
A PUBLIC auction could be a way for property buyers to snap up properties at a bargain but the auctioneers’ advice is for buyers to do their homework first before buying an auctioned property.
Some of the factors to take note are:
Legal advice
Obtain a copy of the condition of sale and seek independent legal advice on it.
Property inspection
Prospective buyers should inspect the property they are interested in by looking at the external facade and location first. The property interior may not be available for viewing.
Vacant possession
It is not a requirement for auctioned properties to come with vacant possession.
Bank loans
Prospective buyers should consult banks on the loans available for the auctioned property to ensure that financing will not be a problem.
Title search
An official individual title search at the relevant Land Office or other relevant authorities should be conducted on the property to ensure that an individual/strata title has been issued and that there are no caveats attached.
Enquiries with developer
Make the necessary enquiries with the developer, proprietors and other relevant parties to confirm the terms and conditions of the sale such as whether the sale is open to all races or to Malaysian citizens who are bumiputras only.
By The Star
Malaysia to review taxes to help builders
The Housing and Local Government Ministry will think of ways to provide more incentives for developers to ensure that the construction industry remain resilient despite the faltering economy.
Its minister, Datuk Seri Ong Ka Chuan, said the ministry would review the stamp duty and taxes to ease the burden of the developers in building more houses.
The ministry will monitor the situation and find ways to stimulate the construction industry, he told reporters after presenting the keys to the owners of Milan condominium in Damansara Perdana in Petaling Jaya today.
"Besides allocating RM100 million for the Housing Credit Guarantee Scheme this year to enable those without proof (statements) of income to obtain ahousing loan, we will think of other incentives," he said.
Ong said housing developers should build more low- and medium-cost houses to help keep the construction sector buoyant while those, who had completed their projects to price the houses at reasonable prices.
He said the ministry would continue to promote the ''Malaysia My Second Home''programme by enticing foreigners to buy houses priced above RM250,000.
Ong said it is important that the construction industry remain resilient to avoid retrenchment in the sector.
By Bernama
Its minister, Datuk Seri Ong Ka Chuan, said the ministry would review the stamp duty and taxes to ease the burden of the developers in building more houses.
The ministry will monitor the situation and find ways to stimulate the construction industry, he told reporters after presenting the keys to the owners of Milan condominium in Damansara Perdana in Petaling Jaya today.
"Besides allocating RM100 million for the Housing Credit Guarantee Scheme this year to enable those without proof (statements) of income to obtain ahousing loan, we will think of other incentives," he said.
Ong said housing developers should build more low- and medium-cost houses to help keep the construction sector buoyant while those, who had completed their projects to price the houses at reasonable prices.
He said the ministry would continue to promote the ''Malaysia My Second Home''programme by enticing foreigners to buy houses priced above RM250,000.
Ong said it is important that the construction industry remain resilient to avoid retrenchment in the sector.
By Bernama
Technology leading the trend in office space
ADRIAN Symons, director of M Moser Associates Sdn Bhd, a creator and designer of office space, has his desk by the window. It is a space he shares with 10-odd staff, with desks next to each other. There is no room for confidential chats on the phone line.
If there is anything private and confidential to be said, there is always the meeting room.
Although Symons is heading the office, he believes that the room for the boss with the huge desk in the centre is more hierarchical than anything.
“The office has gone egalitarian. The pantry is a space to encourage people to meet and chat over coffee and exchange information, not so much as a place where people take time off work. A client, with a three-storey building, did not want a lift. They wanted people to meet on the stairs. Barriers are being removed to encourage interaction between co-workers and between management and workers,” says Symons.
In some offices, the pantry is located at the front to create a sense of warmth, that this is a friendly place to be in. A lot of information can be exchanged over coffee, not to mention relationships are being formed which promotes the general office environment. Increasingly, barriers are being removed in the office environment.
“Contributing to this exchange of information is the use of technology in the work place. And technology will lead the way,” he says.
Some offices have strings of meetings rooms which are not used, or may have huge meeting rooms.
“How many people meet? How many meetings and their duration? These factors should be considered to determine what is needed. In some cases where two companies share a floor, is it possible to share the meeting rooms and free up space?
“Most trends in the office space environment is led by technology. A person goes to the space for a function. In some offices, there is no designated space for people, just space to perform a function.
People, or the software, and technology will have to meet and housing both of these is the building, which is part of the hardware.
“Generally, clients have already pre-determined a building before they seek our services. They benefit more if they speak to us before they commit to a building. We also help with the pre-leasing stage, says Symons.
In Malaysia, where offices can be located in a two-storey shoplot or a more sophisticated office tower, there has to be a certain degree of efficiency in terms of space, taking into account how people work today and the evolving office technology. Besides the laptop and mobile phone, there is a plethora of office gadgets to help us communicate.
“How we use space and technology depends to a great extent on how IT, human resources and accommodation (the building we occupy) come together. But of late, a new trichotomy has emerged and this comprises security, marketing and branding and corporate identity.
Huge amounts are spent on branding to keep a service or product in the minds of customers, but many in top management have forgotten that the space a company occupies can itself be part of the branding process. And this is where strategic planning of a building comes in.
“Different buildings have different efficiency, with some being more suitable for some industries than others. How an office is designed or how space and colours are used are part of the branding process,” says Symons.
Build the building inside out. Let the interior drive the architecture. The outside of the building is not used but it is the interior that is used. That is what is meant by a purpose-built building, a structure designed and laid out according to the needs and requirements of the client, says Symons.
A German chicken feed company bought two pieces of land. They wanted to build an office and storehouse/warehouse. We build the building inside out; three-storey on a rectangular piece of land at the end of which is the warehouse. The interior drove the architecture. They did not want lifts because they wanted the staff to mix and meet on the stairs and on the floor, says Symons.
Besides contributing to the branding and image of the company, a well-designed and cheerful office can also be a significant factor in retaining existing staff and attracting new ones.
While it may sometimes be impossible to change what is already bought or leased, it is, in most instances, possible to make the best of what’s available.
“Not all buildings are equal. Some may be more suitable for certain industries compared to others. Fitting out a building is a costly affair. So by a process of elimination, you arrive at the best option or you work with the architect,” he adds.
By The Star (by Thean Lee Cheng)
If there is anything private and confidential to be said, there is always the meeting room.
Although Symons is heading the office, he believes that the room for the boss with the huge desk in the centre is more hierarchical than anything.
“The office has gone egalitarian. The pantry is a space to encourage people to meet and chat over coffee and exchange information, not so much as a place where people take time off work. A client, with a three-storey building, did not want a lift. They wanted people to meet on the stairs. Barriers are being removed to encourage interaction between co-workers and between management and workers,” says Symons.
In some offices, the pantry is located at the front to create a sense of warmth, that this is a friendly place to be in. A lot of information can be exchanged over coffee, not to mention relationships are being formed which promotes the general office environment. Increasingly, barriers are being removed in the office environment.
“Contributing to this exchange of information is the use of technology in the work place. And technology will lead the way,” he says.
Some offices have strings of meetings rooms which are not used, or may have huge meeting rooms.
“How many people meet? How many meetings and their duration? These factors should be considered to determine what is needed. In some cases where two companies share a floor, is it possible to share the meeting rooms and free up space?
“Most trends in the office space environment is led by technology. A person goes to the space for a function. In some offices, there is no designated space for people, just space to perform a function.
People, or the software, and technology will have to meet and housing both of these is the building, which is part of the hardware.
“Generally, clients have already pre-determined a building before they seek our services. They benefit more if they speak to us before they commit to a building. We also help with the pre-leasing stage, says Symons.
In Malaysia, where offices can be located in a two-storey shoplot or a more sophisticated office tower, there has to be a certain degree of efficiency in terms of space, taking into account how people work today and the evolving office technology. Besides the laptop and mobile phone, there is a plethora of office gadgets to help us communicate.
“How we use space and technology depends to a great extent on how IT, human resources and accommodation (the building we occupy) come together. But of late, a new trichotomy has emerged and this comprises security, marketing and branding and corporate identity.
Huge amounts are spent on branding to keep a service or product in the minds of customers, but many in top management have forgotten that the space a company occupies can itself be part of the branding process. And this is where strategic planning of a building comes in.
“Different buildings have different efficiency, with some being more suitable for some industries than others. How an office is designed or how space and colours are used are part of the branding process,” says Symons.
Build the building inside out. Let the interior drive the architecture. The outside of the building is not used but it is the interior that is used. That is what is meant by a purpose-built building, a structure designed and laid out according to the needs and requirements of the client, says Symons.
A German chicken feed company bought two pieces of land. They wanted to build an office and storehouse/warehouse. We build the building inside out; three-storey on a rectangular piece of land at the end of which is the warehouse. The interior drove the architecture. They did not want lifts because they wanted the staff to mix and meet on the stairs and on the floor, says Symons.
Besides contributing to the branding and image of the company, a well-designed and cheerful office can also be a significant factor in retaining existing staff and attracting new ones.
While it may sometimes be impossible to change what is already bought or leased, it is, in most instances, possible to make the best of what’s available.
“Not all buildings are equal. Some may be more suitable for certain industries compared to others. Fitting out a building is a costly affair. So by a process of elimination, you arrive at the best option or you work with the architect,” he adds.
By The Star (by Thean Lee Cheng)
Friday, February 27, 2009
Demand for property resilient - Malton
SHAH ALAM: There is evidence that demand remains resilient in the property sector although housebuyers are becoming more prudent amid the economic slowdown, said Malton Bhd.
“Our property development in Puchong for example is still having good sales where terrace houses recorded good take-up (rates). Our commercial development is also doing quite well too,” said sales and marketing director Tracey Lai after a signing ceremony between Malton and hypermarket group Carrefour here.
Nevertheless, Lai acknowledged the property market was getting more challenging.
“Buyers are looking for houses that are worth buying, good location and now, they are comparing products offered by the developers before choosing the right one.
“As for us, we are fortunate to have good locations for our developments such as Bukit Rimau township and with new financial packaging strategies offered to buyers, we hope to facilitate their purchase at this time of difficulty,” she said.
Malton executive director Hong Lay Chuan said apart from building a new Carrefour at Bukit Rimau, a new hospital by Columbia Asia Healthcare will also be built there.
“We have about 50 acres of commercial land that are still undeveloped here at Bukit Rimau and with the development of the new hypermarket and hospital, our development here at Bukit Rimau is nearly completed,” he said.
By The Star
“Our property development in Puchong for example is still having good sales where terrace houses recorded good take-up (rates). Our commercial development is also doing quite well too,” said sales and marketing director Tracey Lai after a signing ceremony between Malton and hypermarket group Carrefour here.
Nevertheless, Lai acknowledged the property market was getting more challenging.
“Buyers are looking for houses that are worth buying, good location and now, they are comparing products offered by the developers before choosing the right one.
“As for us, we are fortunate to have good locations for our developments such as Bukit Rimau township and with new financial packaging strategies offered to buyers, we hope to facilitate their purchase at this time of difficulty,” she said.
Malton executive director Hong Lay Chuan said apart from building a new Carrefour at Bukit Rimau, a new hospital by Columbia Asia Healthcare will also be built there.
“We have about 50 acres of commercial land that are still undeveloped here at Bukit Rimau and with the development of the new hypermarket and hospital, our development here at Bukit Rimau is nearly completed,” he said.
By The Star
Abu Dhabi builder plans US$10b project in Jordan
ABU DHABI: Abu Dhabi property developer Al Maabar International Investments said yesterday that it plans to build a US$10 billion (US$1 = RM3.67) development in Jordan to help create jobs and develop the local economy.
The joint venture, which includes Aldar Properties and Sorouh Real Estate, said the waterfront real estate and tourism development, one of the biggest private sector investments in United Arab Emirates (UAE), would be in Aqaba on the Red Sea coast.
The group, which last April announced it would build a US$5 billion project in Jordan, said it would begin construction on the residential, tourism and commercial project in the first half of 2010 and aimed to create 15,000 jobs.
Al Maabar said it signed the deal with Jordan to acquire 3.2 million sq m of land in Aqaba for US$500 million for the development.
During the six-year boom in oil prices that ended in mid-2008, the capital of the UAE amassed hundreds of billions of dollars in surplus revenues from oil exports.
Abu Dhabi, facing a slowdown as oil prices slump, his week launched a US$500 million takeover bid for Canada's Nova Chemicals.
Aldar and Sorouh each own a 30-per cent stake in Al Maabar. Reem Investments, Reem International, Al Qudra Holdings and investment firm Mubadala Development Co hold the remaining stakes.
By Reuters
The joint venture, which includes Aldar Properties and Sorouh Real Estate, said the waterfront real estate and tourism development, one of the biggest private sector investments in United Arab Emirates (UAE), would be in Aqaba on the Red Sea coast.
The group, which last April announced it would build a US$5 billion project in Jordan, said it would begin construction on the residential, tourism and commercial project in the first half of 2010 and aimed to create 15,000 jobs.
Al Maabar said it signed the deal with Jordan to acquire 3.2 million sq m of land in Aqaba for US$500 million for the development.
During the six-year boom in oil prices that ended in mid-2008, the capital of the UAE amassed hundreds of billions of dollars in surplus revenues from oil exports.
Abu Dhabi, facing a slowdown as oil prices slump, his week launched a US$500 million takeover bid for Canada's Nova Chemicals.
Aldar and Sorouh each own a 30-per cent stake in Al Maabar. Reem Investments, Reem International, Al Qudra Holdings and investment firm Mubadala Development Co hold the remaining stakes.
By Reuters
Plenitude set to go region
GEORGE TOWN: Plenitude Bhd is ready to spread its wings in Asia.
The listed developer, which reported a record net profit and revenue of RM78.6mil and RM347.8mil respectively for the financial year ended June 2008, is looking for the “right price and right location” in neighbouring countries, says executive chairman Chua Elsie.
“In the next one or two years, we will be embarking on projects in other Asian countries but we are still looking to expand our land bank in Malaysia; that is our priority.
“Plenitude has about 1,619ha in Malaysia, of which half is undeveloped,” she said, adding that the company had some 810ha of undeveloped land in Johor Baru, Klang, Sungai Petani and Penang.
“We are scouting around a few places on Penang island to increase our land bank,” she said in a recent interview.
On Plenitude’s recently launched Bayu Ferringhi development, Chua said the freehold project, comprising 44 luxurious semi-detached villas and 112 condominiums, would be built on 4.45ha at Jalan Batu Ferringhi.
Prices start from RM1.76mil for the villas and RM761,000 for the condominiums.
The project, to be undertaken by wholly-owned unit Plenitude Heights Sdn Bhd, will incorporate a tropical resort lifestyle theme.
Chua said the new development was “especially significant” as it was Plenitude’s maiden property development here.
“Although we have been very active in other states, it took some time for us to embark on a project in Penang because land is scarce here.
“We had to wait a long time for the ‘right’ piece of land and as soon as we got it, we launched Bayu Ferringhi,” she said, adding that despite the economic challenges, response had been encouraging.
“Whether times are good or bad, people still need a place to live. We are offering low-density, value-added property located at prime location, so we are confident.
“About 30% of the villas and condominiums are already reserved by purchasers and there have been many enquiries from locals and foreigners,” she said, adding that the gross development value (GDV) for Bayu Ferringhi was RM200mil.
The developer is targeting prospective buyers from Hong Kong, Britain and Europe to invest in its property under the Malaysia My Second Home Programme.
Plenitude chief operating officer Khoo Yek San described the condominium units as the state’s first and only “bungalows in the sky”.
“This project is special. The units are detached from each other, so it is like you are living in a bungalow in the sky,” she said.
She added that Plenitude, which also owns the Tanjung Bungah Beach Hotel here, would be developing its 0.76ha parcel next to the hotel next year.
“We expect a GDV of RM200mil from that project and are considering serviced apartments although nothing has been firmed up yet,” she said.
By The Star (by Christina Chin)
The listed developer, which reported a record net profit and revenue of RM78.6mil and RM347.8mil respectively for the financial year ended June 2008, is looking for the “right price and right location” in neighbouring countries, says executive chairman Chua Elsie.
“In the next one or two years, we will be embarking on projects in other Asian countries but we are still looking to expand our land bank in Malaysia; that is our priority.
“Plenitude has about 1,619ha in Malaysia, of which half is undeveloped,” she said, adding that the company had some 810ha of undeveloped land in Johor Baru, Klang, Sungai Petani and Penang.
“We are scouting around a few places on Penang island to increase our land bank,” she said in a recent interview.
On Plenitude’s recently launched Bayu Ferringhi development, Chua said the freehold project, comprising 44 luxurious semi-detached villas and 112 condominiums, would be built on 4.45ha at Jalan Batu Ferringhi.
Prices start from RM1.76mil for the villas and RM761,000 for the condominiums.
The project, to be undertaken by wholly-owned unit Plenitude Heights Sdn Bhd, will incorporate a tropical resort lifestyle theme.
Chua said the new development was “especially significant” as it was Plenitude’s maiden property development here.
“Although we have been very active in other states, it took some time for us to embark on a project in Penang because land is scarce here.
“We had to wait a long time for the ‘right’ piece of land and as soon as we got it, we launched Bayu Ferringhi,” she said, adding that despite the economic challenges, response had been encouraging.
“Whether times are good or bad, people still need a place to live. We are offering low-density, value-added property located at prime location, so we are confident.
“About 30% of the villas and condominiums are already reserved by purchasers and there have been many enquiries from locals and foreigners,” she said, adding that the gross development value (GDV) for Bayu Ferringhi was RM200mil.
The developer is targeting prospective buyers from Hong Kong, Britain and Europe to invest in its property under the Malaysia My Second Home Programme.
Plenitude chief operating officer Khoo Yek San described the condominium units as the state’s first and only “bungalows in the sky”.
“This project is special. The units are detached from each other, so it is like you are living in a bungalow in the sky,” she said.
She added that Plenitude, which also owns the Tanjung Bungah Beach Hotel here, would be developing its 0.76ha parcel next to the hotel next year.
“We expect a GDV of RM200mil from that project and are considering serviced apartments although nothing has been firmed up yet,” she said.
By The Star (by Christina Chin)
Thursday, February 26, 2009
Brisk sales for SP Setia home loan package
SHAH ALAM: SP Setia Bhd’s recently launched 5/95 Home Loan Package has achieved better-than-expected sales of RM300mil amid the softening economy, said group managing director Tan Sri Liew Kee Sin.
From left: SP Setia executive director Teow Leong Seng, chief financial officer Yap Kok Weng, chairman Tan Sri Abdul Rashid Abdul Manaf and Tan Sri Liew Kee Sin at the briefing.
“At that point in time, we did not specify a target because the market was so bad. We wanted to test whether this (5/95 programme) will work, and apparently it works very well.
“RM300mil sales in less than two months is very good,” he said after the company AGM yesterday.
The RM300mil sales figure was based on bookings made, he said.
Launched on Jan 19, SP Setia’s 5/95 Home Loan Package allows buyers to pay only an initial 5% of the price of the house while all legal fees and stamp duty on the sales and purchase agreement, among other benefits, will be borne by SP Setia. The package is available until April.
SP Setia has targeted RM1.1bil in revenue for its financial year ending Oct 31 (FY09). It has already chalked up RM400mil in sales so far.
Meanwhile, the developer said its RM2bil Eco Lakes township in Ho Chi Minh City, Vietnam, would be launched next month as planned.
SP Setia has a sales target of RM100mil in FY09 for the 558-acre residential property development, which will take at least 10 years to complete.
In April, it will launch its first high-rise project, Setia Sky Residences.
The luxury serviced apartments project, located at the intersection of Jalan Tun Razak and Jalan Raja Muda Abdul Aziz in Kuala Lumpur, has a gross development value of RM800mil.
The company has targeted to achieve RM200mil in sales for this project in FY09.
Asked if SP Setia would be interested in any merger and acquisition (M&A) plan, Liew brushed off the idea.
“M&A doesn’t make sense right now unless the company has a lot of good landbank, but most companies that are in trouble do not have much land left,” he said.
To date, Liew said the company had unbilled sales of RM1.2bil and a landbank of about 4,000 acres.
The company would maintain its dividend payout ratio of 50% of profit after tax, he said.
By The Star
From left: SP Setia executive director Teow Leong Seng, chief financial officer Yap Kok Weng, chairman Tan Sri Abdul Rashid Abdul Manaf and Tan Sri Liew Kee Sin at the briefing.
“At that point in time, we did not specify a target because the market was so bad. We wanted to test whether this (5/95 programme) will work, and apparently it works very well.
“RM300mil sales in less than two months is very good,” he said after the company AGM yesterday.
The RM300mil sales figure was based on bookings made, he said.
Launched on Jan 19, SP Setia’s 5/95 Home Loan Package allows buyers to pay only an initial 5% of the price of the house while all legal fees and stamp duty on the sales and purchase agreement, among other benefits, will be borne by SP Setia. The package is available until April.
SP Setia has targeted RM1.1bil in revenue for its financial year ending Oct 31 (FY09). It has already chalked up RM400mil in sales so far.
Meanwhile, the developer said its RM2bil Eco Lakes township in Ho Chi Minh City, Vietnam, would be launched next month as planned.
SP Setia has a sales target of RM100mil in FY09 for the 558-acre residential property development, which will take at least 10 years to complete.
In April, it will launch its first high-rise project, Setia Sky Residences.
The luxury serviced apartments project, located at the intersection of Jalan Tun Razak and Jalan Raja Muda Abdul Aziz in Kuala Lumpur, has a gross development value of RM800mil.
The company has targeted to achieve RM200mil in sales for this project in FY09.
Asked if SP Setia would be interested in any merger and acquisition (M&A) plan, Liew brushed off the idea.
“M&A doesn’t make sense right now unless the company has a lot of good landbank, but most companies that are in trouble do not have much land left,” he said.
To date, Liew said the company had unbilled sales of RM1.2bil and a landbank of about 4,000 acres.
The company would maintain its dividend payout ratio of 50% of profit after tax, he said.
By The Star
SP Setia to see maiden overseas returns in FY09
SHAH ALAM: SP Setia Bhd, Malaysia’s most valuable property developer, may begin harvesting maiden returns from its initial overseas venture in Vietnam as early as the current financial year ending Oct 31, 2009 (FY09).
This is in anticipation that the developer will rake in some RM100 million worth of landed residential property sales in the Indochina nation.
“We will work very hard to achieve this RM100 million (sales). We have never sold anything in Vietnam so far,” SP Setia group managing director and chief executive officer Tan Sri Liew Kee Sin told reporters after the company’s shareholders meeting here yesterday.
In June 2007, the developer entered into a joint venture agreement with Becamex IDC Corp and Treasure Link Far East Ltd to develop several parcels of land with a combined area of 226ha within the My Phuoc enclave of Binh Duong province.
The tract where SP Setia’s estimated RM2 billion EcoLakes at My Phuoc mixed development will be undertaken, is located 40km north of Ho Chi Minh City, and is about an hour’s drive from the Tan Son Nhat international airport.
Income from SP Setia’s ventures abroad is deemed timely. This is because the Malaysian real estate sector is heading to a downcycle, and the effects have hurt local property developers’ earnings.
But Liew said the firm would continue to reward shareholders with a 50% dividend payout from its annual net profit.
While its latest set of financials had emerged weaker, it is worth noting that the developer has existing unbilled property sales of about RM1.2 billion which could sustain earnings in the next two years.
Unbilled real estate sales refer to the value of properties sold which is yet to be recognised in a developer’s books.
SP Setia has some 1,600ha of undeveloped land in Malaysia, and another 240ha in Ho Chi Minh City. “We will focus on looking for good land to buy,” said Liew.
Meanwhile, SP Setia’s “5/95 Home Loan Package” has already yielded returns. Since its launch last month, the scheme has raked in some RM300 million worth of property sales so far, according to Liew.
“It’s beyond our expectations. The RM300 million sales involve landed properties across the board,” Liew said.
During FY08, SP Setia sold RM1.404 billion worth of properties. But FY09 figures could be lower at some RM1.1 billion against a backdrop of weaker economic outlook, according to Liew.
On the whole, SP Setia’s earnings fell in FY08. Net profit was down 17.9% to RM213.46 million from RM260.07 million in FY07 on lower gross profit margins, partly due to costlier building materials. Revenue, however, rose 15.7% to RM1.33 billion from RM1.15 billion.
Shares of SP Setia ended 1.2% or four sen lower at RM3.30 yesterday, for a market capitalisation of RM3.36 billion. A total of 721,600 shares were traded. The stock has gained 6.45% so far this year, outperforming the Kuala Lumpur Composite Index’s 2.25% rise.
By The EDGE Malaysia (by Chong Jin Hun)
This is in anticipation that the developer will rake in some RM100 million worth of landed residential property sales in the Indochina nation.
“We will work very hard to achieve this RM100 million (sales). We have never sold anything in Vietnam so far,” SP Setia group managing director and chief executive officer Tan Sri Liew Kee Sin told reporters after the company’s shareholders meeting here yesterday.
In June 2007, the developer entered into a joint venture agreement with Becamex IDC Corp and Treasure Link Far East Ltd to develop several parcels of land with a combined area of 226ha within the My Phuoc enclave of Binh Duong province.
The tract where SP Setia’s estimated RM2 billion EcoLakes at My Phuoc mixed development will be undertaken, is located 40km north of Ho Chi Minh City, and is about an hour’s drive from the Tan Son Nhat international airport.
Income from SP Setia’s ventures abroad is deemed timely. This is because the Malaysian real estate sector is heading to a downcycle, and the effects have hurt local property developers’ earnings.
But Liew said the firm would continue to reward shareholders with a 50% dividend payout from its annual net profit.
While its latest set of financials had emerged weaker, it is worth noting that the developer has existing unbilled property sales of about RM1.2 billion which could sustain earnings in the next two years.
Unbilled real estate sales refer to the value of properties sold which is yet to be recognised in a developer’s books.
SP Setia has some 1,600ha of undeveloped land in Malaysia, and another 240ha in Ho Chi Minh City. “We will focus on looking for good land to buy,” said Liew.
Meanwhile, SP Setia’s “5/95 Home Loan Package” has already yielded returns. Since its launch last month, the scheme has raked in some RM300 million worth of property sales so far, according to Liew.
“It’s beyond our expectations. The RM300 million sales involve landed properties across the board,” Liew said.
During FY08, SP Setia sold RM1.404 billion worth of properties. But FY09 figures could be lower at some RM1.1 billion against a backdrop of weaker economic outlook, according to Liew.
On the whole, SP Setia’s earnings fell in FY08. Net profit was down 17.9% to RM213.46 million from RM260.07 million in FY07 on lower gross profit margins, partly due to costlier building materials. Revenue, however, rose 15.7% to RM1.33 billion from RM1.15 billion.
Shares of SP Setia ended 1.2% or four sen lower at RM3.30 yesterday, for a market capitalisation of RM3.36 billion. A total of 721,600 shares were traded. The stock has gained 6.45% so far this year, outperforming the Kuala Lumpur Composite Index’s 2.25% rise.
By The EDGE Malaysia (by Chong Jin Hun)
No property bubble here, say industry experts
PETALING JAYA: The local property market would be able to escape a bubble, such as the one affecting neighbouring countries, several industry experts said.
They said the local property market would be resilient in facing the current downturn as it was mainly driven by domestic demand.
A roundtable discussion on Corporate Real Estate Investment Opportunities organised by Zerin Properties that was posted on its website www.zerinproperties.com yesterday, the panellists agreed that the real estate market, particularly the residential sub-sector in well-located areas in the Klang Valley, continued to be attractive to both local and foreign investors.
According to International Real Estate Federation (FIABCI) Malaysia president Datuk Richard Fong, the property market did experience a “slight bubble” in the high-end sector in Kuala Lumpur, particularly in KLCC, Mont’Kiara and Hartamas where property prices had doubled over the last three to five years.
Fong said there were good deals to be had in the condominium market in Kuala Lumpur city centre, especially those priced between RM800 and RM1,000 psf. “One should grab when you find sellers looking to cash out at a 30% discount from the property’s peak price,” he advised.
The roundtable discussion was moderated by Hall Chadwick Asia Sdn Bhd chairman Kumar Tharmalingam.
Previndran Singhe, chief executive officer of Zerin Properties said: “We are still resilient although transactions are slowing down. After the Chinese New Year, you can see developers launching products but in order to be successful, they have to be innovative.”
He pointed out that landed properties continued to remain the best form of property investment. “With developers offering 5/95 and 20/80 financing schemes, the primary residential market is becoming attractive. Then two years down the line, investors can also enjoy some gains from capital appreciation.”
The panellists also said that the liquidity in the marketplace, innovations by developers and the Malaysia My Second Home programme also increased the attractiveness of real estate.
They observed that investing in real estate investment trusts (REITs) was also becoming popular as an alternative form of investment.
Axis REIT chief executive officer Stewart LaBrooy felt that investors found REITs attractive due to their hassle-free nature and high yields which could easily reach 12%.
“For foreign investors, liquid investments are far better than having the burden of a physical property like finding a tenant. When it comes to REITs, they can cash in and out as they please.”
On the commercial office sub-sector, the panellists agreed that KLCC’s iconic Petronas Twin Towers landmark remained attractive to large multinational corporations. Previndran said rental rates in KLCC were not expected to “fly” due to sustainable demand.
However, the office market could get a bit soft in Petaling Jaya with new supply coming from PJ8 and V Square while rentals are stable in micro locations like Damansara Heights and Bangsar.
By The EDGE Malaysia (by Loo Pik Kwan)
They said the local property market would be resilient in facing the current downturn as it was mainly driven by domestic demand.
A roundtable discussion on Corporate Real Estate Investment Opportunities organised by Zerin Properties that was posted on its website www.zerinproperties.com yesterday, the panellists agreed that the real estate market, particularly the residential sub-sector in well-located areas in the Klang Valley, continued to be attractive to both local and foreign investors.
According to International Real Estate Federation (FIABCI) Malaysia president Datuk Richard Fong, the property market did experience a “slight bubble” in the high-end sector in Kuala Lumpur, particularly in KLCC, Mont’Kiara and Hartamas where property prices had doubled over the last three to five years.
Fong said there were good deals to be had in the condominium market in Kuala Lumpur city centre, especially those priced between RM800 and RM1,000 psf. “One should grab when you find sellers looking to cash out at a 30% discount from the property’s peak price,” he advised.
The roundtable discussion was moderated by Hall Chadwick Asia Sdn Bhd chairman Kumar Tharmalingam.
Previndran Singhe, chief executive officer of Zerin Properties said: “We are still resilient although transactions are slowing down. After the Chinese New Year, you can see developers launching products but in order to be successful, they have to be innovative.”
He pointed out that landed properties continued to remain the best form of property investment. “With developers offering 5/95 and 20/80 financing schemes, the primary residential market is becoming attractive. Then two years down the line, investors can also enjoy some gains from capital appreciation.”
The panellists also said that the liquidity in the marketplace, innovations by developers and the Malaysia My Second Home programme also increased the attractiveness of real estate.
They observed that investing in real estate investment trusts (REITs) was also becoming popular as an alternative form of investment.
Axis REIT chief executive officer Stewart LaBrooy felt that investors found REITs attractive due to their hassle-free nature and high yields which could easily reach 12%.
“For foreign investors, liquid investments are far better than having the burden of a physical property like finding a tenant. When it comes to REITs, they can cash in and out as they please.”
On the commercial office sub-sector, the panellists agreed that KLCC’s iconic Petronas Twin Towers landmark remained attractive to large multinational corporations. Previndran said rental rates in KLCC were not expected to “fly” due to sustainable demand.
However, the office market could get a bit soft in Petaling Jaya with new supply coming from PJ8 and V Square while rentals are stable in micro locations like Damansara Heights and Bangsar.
By The EDGE Malaysia (by Loo Pik Kwan)
More commercial hubs for Klang Valley
Planners need to guide enterprises without stiffling initiative
IF, like me, you’d far rather commute an hour than change your baby’s nappy, then the idea of working from home surrounded by your IT gizmos is dead in the water.
It always was a silly New Age idea anyway.
I can’t speak for the female side of the equation, but a man’s office defines his purpose in life.
You don’t slog three years at university just for the privilege of locking yourself in a cubby hole under the stairs at home waiting for e-mail. Maybe that’s an acceptable way of life for asylum seekers and IT consultants but real human beings need real human contact.
The office is your club, your camp fire and your hunting ground. It opens up opportunities for matrimony as well as career advancement. As an employer, I can’t imagine promoting a dehumanised digit living the life of a troglodyte. I’d rather promote my Blackberry.
When it comes to office location, there is now a happy medium between city and suburb.
Up until the late 1980s, if you had an office in PJ your name was probably Klaus and you traded heavy switchgear for a Bavarian gesellschaft. You probably had a beard.
Now some perfectly normal people work in PJ, and Jalan Semangat is transforming into a second St Kilda Road. Take a look at the new Quill building there. It’s superb.
The Petronas Twin Towers still stand at the apex of the office space market. Last deal done was at about RM12.50 per sq ft gross (that’s including service charges, it wasn’t a comment.)
Around the Twin Towers can be found some excellent buildings, including Menara Maxis and Menara Citibank. They are also Grade A and are currently clocking up rents of RM8.50 to RM9 per sq ft per month.
This shift in focus to around KLCC which occurred in the late 1990s was at the expense of the original Jalan P. Ramlee/Sultan Ismail/Raja Chulan area which, in some sections, is now becoming viewed as secondary. This is largely attributable to traffic congestion.
Areas of the Golden Triangle which are gaining popularity include the Tun Razak/Jalan Ampang intersection which has both traffic accessibility as well as an LRT. Here you will find new buildings such as G Tower and The Icon coming up, offering a million sq ft of new space.
Damansara Heights has been a popular office location since the 1960s but other decentralised areas began to take off about the time of the first Proton Saga. There is now just over 24 million sq ft of office space in the Golden Triangle but decentralised areas, including KL Sentral and Mid Valley, have rapidly grown to 20 million sq ft and in other suburban areas along the Klang Valley, you will find 65 buildings with another 12.4 million sq ft. In other words, the Golden Triangle is losing significance.
Kuala Lumpur City Hall is presumably satisfied with this shift which is partly the result of its freeze on new office buildings in the Golden Triangle over 20 stories, imposed since 1997.
As the city grows, new commercial hubs will evolve and it is a continuing challenge for our planners to guide private enterprise without stifling initiative.
Sometimes this produces unexpected results. I have to thank those people at KPMG for moving out of Damansara Heights and into 1 Utama. It was a brave move that surprised many in the industry. For me, it took some cars off the road between me and my office and preserved my average commute time of 10 minutes, although it took some fun out of the journey. (In my imaginary driving game, you get 10 points for hitting an accountant and only two for any motorcyclist. Maiming a personal financial consultant doubles your score, no questions asked.)
Further north from 1 Utama, Mutiara Damansara is fast becoming an office destination and has 500,000 sq ft of space either completed or under construction.
And further north, Damansara Perdana is completing four office towers totaling 800,000 sq ft net and the take-up has been excellent. This was a bold project when it was inaugurated three years ago, and underlines the potential for office space in the suburbs if you get your location and timing right.
It is a pity that the new LRT lines now have difficulty in keeping up with this radial development. In the US and Australia, it was development that followed the rail lines, and not vice-versa.
Nevertheless, the new LRT linking Kota Damansara with the city will be a boon. It will roughly follow the direction of Jalan Damansara. Let’s hope they can keep the traffic flowing underneath while they build it. I don’t want to have to stay at home.
By The Star (by Christopher Boyd)
IF, like me, you’d far rather commute an hour than change your baby’s nappy, then the idea of working from home surrounded by your IT gizmos is dead in the water.
It always was a silly New Age idea anyway.
I can’t speak for the female side of the equation, but a man’s office defines his purpose in life.
You don’t slog three years at university just for the privilege of locking yourself in a cubby hole under the stairs at home waiting for e-mail. Maybe that’s an acceptable way of life for asylum seekers and IT consultants but real human beings need real human contact.
The office is your club, your camp fire and your hunting ground. It opens up opportunities for matrimony as well as career advancement. As an employer, I can’t imagine promoting a dehumanised digit living the life of a troglodyte. I’d rather promote my Blackberry.
When it comes to office location, there is now a happy medium between city and suburb.
Up until the late 1980s, if you had an office in PJ your name was probably Klaus and you traded heavy switchgear for a Bavarian gesellschaft. You probably had a beard.
Now some perfectly normal people work in PJ, and Jalan Semangat is transforming into a second St Kilda Road. Take a look at the new Quill building there. It’s superb.
The Petronas Twin Towers still stand at the apex of the office space market. Last deal done was at about RM12.50 per sq ft gross (that’s including service charges, it wasn’t a comment.)
Around the Twin Towers can be found some excellent buildings, including Menara Maxis and Menara Citibank. They are also Grade A and are currently clocking up rents of RM8.50 to RM9 per sq ft per month.
This shift in focus to around KLCC which occurred in the late 1990s was at the expense of the original Jalan P. Ramlee/Sultan Ismail/Raja Chulan area which, in some sections, is now becoming viewed as secondary. This is largely attributable to traffic congestion.
Areas of the Golden Triangle which are gaining popularity include the Tun Razak/Jalan Ampang intersection which has both traffic accessibility as well as an LRT. Here you will find new buildings such as G Tower and The Icon coming up, offering a million sq ft of new space.
Damansara Heights has been a popular office location since the 1960s but other decentralised areas began to take off about the time of the first Proton Saga. There is now just over 24 million sq ft of office space in the Golden Triangle but decentralised areas, including KL Sentral and Mid Valley, have rapidly grown to 20 million sq ft and in other suburban areas along the Klang Valley, you will find 65 buildings with another 12.4 million sq ft. In other words, the Golden Triangle is losing significance.
Kuala Lumpur City Hall is presumably satisfied with this shift which is partly the result of its freeze on new office buildings in the Golden Triangle over 20 stories, imposed since 1997.
As the city grows, new commercial hubs will evolve and it is a continuing challenge for our planners to guide private enterprise without stifling initiative.
Sometimes this produces unexpected results. I have to thank those people at KPMG for moving out of Damansara Heights and into 1 Utama. It was a brave move that surprised many in the industry. For me, it took some cars off the road between me and my office and preserved my average commute time of 10 minutes, although it took some fun out of the journey. (In my imaginary driving game, you get 10 points for hitting an accountant and only two for any motorcyclist. Maiming a personal financial consultant doubles your score, no questions asked.)
Further north from 1 Utama, Mutiara Damansara is fast becoming an office destination and has 500,000 sq ft of space either completed or under construction.
And further north, Damansara Perdana is completing four office towers totaling 800,000 sq ft net and the take-up has been excellent. This was a bold project when it was inaugurated three years ago, and underlines the potential for office space in the suburbs if you get your location and timing right.
It is a pity that the new LRT lines now have difficulty in keeping up with this radial development. In the US and Australia, it was development that followed the rail lines, and not vice-versa.
Nevertheless, the new LRT linking Kota Damansara with the city will be a boon. It will roughly follow the direction of Jalan Damansara. Let’s hope they can keep the traffic flowing underneath while they build it. I don’t want to have to stay at home.
By The Star (by Christopher Boyd)
HK is the most expensive city for offices
EDINBURGH: London lost its ranking as the world’s most expensive city for offices in 2008, supplanted by Hong Kong and Tokyo for the first time in nine years.
Falling rents in the UK capital, combined with the pound weakening against the euro brought occupancy costs for prime offices in London’s West End down 23 per cent to ?1,403 (?1 = RM4.70) per sq m annually, New York-based property broker Cushman & Wakefield Inc said in a report yesterday.
That compares with ?1,743 per sq m in Hong Kong and ?1,649 in Tokyo.The global financial crisis pushed rents lower in 16 per cent of the world’s biggest cities as financial companies fired workers and cut back on the space they lease, Cushman said. Worldwide mortgage-related losses and asset write downs total more than US$1.1 trillion (US$1 = RM3.67).
London “has now felt the full impact of the credit and banking crisis,” Cushman said.
Costs fell 4 per cent in Hong Kong compared with a year earlier and declined 19 per cent in Tokyo.
“There seems little doubt that rents will continue to fall over 2009, perhaps at a faster rate than before,” said John Siu, general manager, Cushman & Wakefield Hong Kong.
Cushman & Wakefield surveyed 202 locations in 57 countries. Rents climbed 3 per cent globally, the smallest increase since 2004, the broker said. Rent accounts for the bulk of occupancy costs, which also include service charges and property taxes.
Moscow, Dubai, Mumbai, Paris, Damascus, Singapore and midtown Manhattan rounded out the 10 most expensive locations for offices.
Dublin fell to 15th, ranking it out of the top 10 for the first time in three years.
By Bloomberg
Falling rents in the UK capital, combined with the pound weakening against the euro brought occupancy costs for prime offices in London’s West End down 23 per cent to ?1,403 (?1 = RM4.70) per sq m annually, New York-based property broker Cushman & Wakefield Inc said in a report yesterday.
That compares with ?1,743 per sq m in Hong Kong and ?1,649 in Tokyo.The global financial crisis pushed rents lower in 16 per cent of the world’s biggest cities as financial companies fired workers and cut back on the space they lease, Cushman said. Worldwide mortgage-related losses and asset write downs total more than US$1.1 trillion (US$1 = RM3.67).
London “has now felt the full impact of the credit and banking crisis,” Cushman said.
Costs fell 4 per cent in Hong Kong compared with a year earlier and declined 19 per cent in Tokyo.
“There seems little doubt that rents will continue to fall over 2009, perhaps at a faster rate than before,” said John Siu, general manager, Cushman & Wakefield Hong Kong.
Cushman & Wakefield surveyed 202 locations in 57 countries. Rents climbed 3 per cent globally, the smallest increase since 2004, the broker said. Rent accounts for the bulk of occupancy costs, which also include service charges and property taxes.
Moscow, Dubai, Mumbai, Paris, Damascus, Singapore and midtown Manhattan rounded out the 10 most expensive locations for offices.
Dublin fell to 15th, ranking it out of the top 10 for the first time in three years.
By Bloomberg
Wednesday, February 25, 2009
SP Setia aims for RM1b property sales
PROPERTY developer SP Setia Bhd is aiming for RM1.1 billion in sales for the financial year ending October 31, 2009, despite the challenging economic situation.
It also expects to make RM100 million in sales in Vietnam for its property project, Setia Eco Lake, to be launched next month, managing director and chief executive officer Tan Sri Liew Kee Sim said.
To date, sales has already reached almost RM500 million, he told a press conference after the company's annual general meeting in Shah Alam today.
He said its landed property in Vietnam had a gross development value of RM2 billion over the next 10 years.
The group has nine ongoing projects located in Johor, Penang and Selangor.
Meanwhile, Liew said the group made RM300 million of its sales over the past several months from its 5/95 home loan package.
Under the package, property buyers pay five per cent upfront the purchase price of the property they are buying from the company while the balance 95 per cent is paid when the property is completed.
"It is a very good success rate and beyond our expectation," Liew said.
On Bank Negara Malaysia's decision to reduce the Overnight Policy Rate (OPR) by 50 basis points to two per cent yesterday, he said that it was a good move for the property sector.
With the rate down, property will be a good buy and "I think the property market will come back very strongly," he said.
Liew said the company, which had a land bank size of 4,000 acres, was also on the lookout for good land or company with very good landbank, although it was not making any acquisition at the moment.
On its first high-end condominium project, Liew said the Setia Sky Residence in Kuala Lumpur City Centre is expected to be launched in April with gross development value of RM200 million.
By Bernama
It also expects to make RM100 million in sales in Vietnam for its property project, Setia Eco Lake, to be launched next month, managing director and chief executive officer Tan Sri Liew Kee Sim said.
To date, sales has already reached almost RM500 million, he told a press conference after the company's annual general meeting in Shah Alam today.
He said its landed property in Vietnam had a gross development value of RM2 billion over the next 10 years.
The group has nine ongoing projects located in Johor, Penang and Selangor.
Meanwhile, Liew said the group made RM300 million of its sales over the past several months from its 5/95 home loan package.
Under the package, property buyers pay five per cent upfront the purchase price of the property they are buying from the company while the balance 95 per cent is paid when the property is completed.
"It is a very good success rate and beyond our expectation," Liew said.
On Bank Negara Malaysia's decision to reduce the Overnight Policy Rate (OPR) by 50 basis points to two per cent yesterday, he said that it was a good move for the property sector.
With the rate down, property will be a good buy and "I think the property market will come back very strongly," he said.
Liew said the company, which had a land bank size of 4,000 acres, was also on the lookout for good land or company with very good landbank, although it was not making any acquisition at the moment.
On its first high-end condominium project, Liew said the Setia Sky Residence in Kuala Lumpur City Centre is expected to be launched in April with gross development value of RM200 million.
By Bernama
KPJ to inject more properties into REIT
KPJ Healthcare Bhd will inject more properties into its Al-'Aqar KPJ REIT (Real Estate Investment Trust), said its chairman, Tan Sri Muhammad Ali Hashim.
He said the properties comprised Seremban Specialist Hospital; Taiping Medical Centre; Kota Kinabalu Specialist Hospital; Bukit Mertajam Specialist Hospital; KPJ Penang Specialist Hospital; Tawakal Hospital; KPJ TawakalSpecialist Hospital; and, KPJ International College of Nursing and HealthSciences.
"The exercise involves a total purchase consideration of RM293 million which will be satisfied by cash of RM176 million and by the issuance of 123 million new units in Al-'Aqar KPJ REIT at 95 sen apiece," he told a media briefing after the company''s extraordinary general meeting in Johor Bahru today.
Muhammad Ali said KPJ was confident the healthcare industry would be resilient and withstand the present global economic slowdown.
He said the Al-'Aqar REIT would allow KPJ to unlock the values of the assets and allow it to reinvest the funds into the group as well as to reduce borrowings.
"The REIT will give us the flexibility to use the funds for potential acquisitions, mergers and reinvestments into new and existing hospitals," he said.
Muhammad Ali said for the year ended December 31, 2008, KPJ's pre-tax profit rose by 12 per cent to RM23.7 million from RM21.1 million in the same period of 2007.
Revenue rose by seven percent to RM325 million from RM304.6 million in thesame period of 2007, he said.
By Bernama
He said the properties comprised Seremban Specialist Hospital; Taiping Medical Centre; Kota Kinabalu Specialist Hospital; Bukit Mertajam Specialist Hospital; KPJ Penang Specialist Hospital; Tawakal Hospital; KPJ TawakalSpecialist Hospital; and, KPJ International College of Nursing and HealthSciences.
"The exercise involves a total purchase consideration of RM293 million which will be satisfied by cash of RM176 million and by the issuance of 123 million new units in Al-'Aqar KPJ REIT at 95 sen apiece," he told a media briefing after the company''s extraordinary general meeting in Johor Bahru today.
Muhammad Ali said KPJ was confident the healthcare industry would be resilient and withstand the present global economic slowdown.
He said the Al-'Aqar REIT would allow KPJ to unlock the values of the assets and allow it to reinvest the funds into the group as well as to reduce borrowings.
"The REIT will give us the flexibility to use the funds for potential acquisitions, mergers and reinvestments into new and existing hospitals," he said.
Muhammad Ali said for the year ended December 31, 2008, KPJ's pre-tax profit rose by 12 per cent to RM23.7 million from RM21.1 million in the same period of 2007.
Revenue rose by seven percent to RM325 million from RM304.6 million in thesame period of 2007, he said.
By Bernama
Mah Sing Q4 earnings down
Mah Sing Group Bhd registered a drop in its net profit for the fourth quarter to RM16.54 million compared with RM20.49 million recorded in the same period last year.
Fourth quarter revenue, however, was higher at RM151.66 million from RM120.4 million in the previous corresponding period.
For the full year ended December 31 2008, the lifestyle developer recorded a net profit of RM92.95 million compared with RM82.26 million in 2007, while revenue grew to RM651.64 million in 2008 from RM573.36 million the year before.
In a statement, Mah Sing said the growth was driven by its commercial and residential projects in the Klang Valley and Johor Baru. Its plastic division also continued to reap good earnings.
Managing director Datuk Seri Leong Hoy Kum said the group racked up credible sales of RM395 million in 2008 due to it focus on the needs of each of its niche markets.
He said the group should be able to sustain momentum in 2009 by offering medium- to high-end residential and investment grade commercial projects.
The group will continue with innovative marketing strategies such as tying up with financiers. Its easy home ownership programme has garnered more than 1,500 enquiries contributing to sales of about RM140 million.
New launches in 2009 will include 30 units of garden bungalows in the Klang Valley and will be priced from RM1.2 million per unit.
A first and final dividend of 16 per cent or 8 sen per share for the financial year ended December 31 2008 has been recommended. This represents a minimum payout of about 41 per cent of its net profit.
By Business Times
Fourth quarter revenue, however, was higher at RM151.66 million from RM120.4 million in the previous corresponding period.
For the full year ended December 31 2008, the lifestyle developer recorded a net profit of RM92.95 million compared with RM82.26 million in 2007, while revenue grew to RM651.64 million in 2008 from RM573.36 million the year before.
In a statement, Mah Sing said the growth was driven by its commercial and residential projects in the Klang Valley and Johor Baru. Its plastic division also continued to reap good earnings.
Managing director Datuk Seri Leong Hoy Kum said the group racked up credible sales of RM395 million in 2008 due to it focus on the needs of each of its niche markets.
He said the group should be able to sustain momentum in 2009 by offering medium- to high-end residential and investment grade commercial projects.
The group will continue with innovative marketing strategies such as tying up with financiers. Its easy home ownership programme has garnered more than 1,500 enquiries contributing to sales of about RM140 million.
New launches in 2009 will include 30 units of garden bungalows in the Klang Valley and will be priced from RM1.2 million per unit.
A first and final dividend of 16 per cent or 8 sen per share for the financial year ended December 31 2008 has been recommended. This represents a minimum payout of about 41 per cent of its net profit.
By Business Times
Mah Sing posts lower net profit
PETALING JAYA: Mah Sing Group Bhd has posted a drop of 19.7% in net profit to RM16.45mil for the fourth quarter ended Dec 31, compared with the previous corresponding period.
At the same time, revenue in the quarter grew 26% to RM151.7mil.
Despite the weaker quarter, the company registered 15% growth in after-tax profit after minority interest to RM93.2mil for the full financial year.
In a statement, the company said contributors to the financial year included the group’s commercial projects, The Icon Jalan Tun Razak and the Southgate Commercial Centre, and several residential projects in the Klang Valley and Johor Baru.
It also said it could “hypothetically raise an additional RM500mil to reach an optimal gearing level of 0.5 times,” giving it a war chest of RM900mil, including the existing cash pile, for expansion.
By The Star
At the same time, revenue in the quarter grew 26% to RM151.7mil.
Despite the weaker quarter, the company registered 15% growth in after-tax profit after minority interest to RM93.2mil for the full financial year.
In a statement, the company said contributors to the financial year included the group’s commercial projects, The Icon Jalan Tun Razak and the Southgate Commercial Centre, and several residential projects in the Klang Valley and Johor Baru.
It also said it could “hypothetically raise an additional RM500mil to reach an optimal gearing level of 0.5 times,” giving it a war chest of RM900mil, including the existing cash pile, for expansion.
By The Star
Tuesday, February 24, 2009
New project to be launched soon
KUALA LUMPUR: Mah Sing Properties Sdn Bhd is set to launch its latest commercial project, StarParc Point, in three months following good response from a project preview last week, said deputy chief operating officer Andy Chua.
Andy Chua with a model of StarParc Point in KL
“Whatever factors a good commercial development should have, we have it here at StarParc Point. What’s more, most of the land around that area is leasehold except for our land.
“We expect to sell off the project this year,” he told StarBiz in an interview yesterday.
The RM118mil StarParc Point is an integrated business hub in Setapak consisting of three-storey shop offices and six-storey retail-cum-office suites on five acres of freehold land. Besides fronting Jalan Genting Klang where there is heavy foot traffic, the project offers over 8% rental yield potential, interesting architectural design and a weather-controlled outdoor yard.
The office suites are priced from RM295,000 or about RM200 per sq ft, while the three-storey shop offices are selling for about RM2.3mil or RM400 per sq ft. The retail unit costs about RM1.3mil each.
Chua said the pricing for the development was “reasonable” in view of the similar prices fetched by surrounding leasehold properties.
He added that the group was working with banks to provide buyers up to 85% financing.
By The Star
Andy Chua with a model of StarParc Point in KL
“Whatever factors a good commercial development should have, we have it here at StarParc Point. What’s more, most of the land around that area is leasehold except for our land.
“We expect to sell off the project this year,” he told StarBiz in an interview yesterday.
The RM118mil StarParc Point is an integrated business hub in Setapak consisting of three-storey shop offices and six-storey retail-cum-office suites on five acres of freehold land. Besides fronting Jalan Genting Klang where there is heavy foot traffic, the project offers over 8% rental yield potential, interesting architectural design and a weather-controlled outdoor yard.
The office suites are priced from RM295,000 or about RM200 per sq ft, while the three-storey shop offices are selling for about RM2.3mil or RM400 per sq ft. The retail unit costs about RM1.3mil each.
Chua said the pricing for the development was “reasonable” in view of the similar prices fetched by surrounding leasehold properties.
He added that the group was working with banks to provide buyers up to 85% financing.
By The Star
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