IIB and China firm in RM2.5bil mega property venture

Deputy Prime Minister Tan Sri Muhyiddin Yassin and President of MCA Datuk Seri Chua Soi Lek witneesing the MOU between President of Iskandar Investment Berhad Datuk Syed Mohamad Syed Ibrahim ad Zhuoda Group Legar representative Yang Hau Qing on the Delevopment of commercial project in Medini Iskandar Malaysia during the world chinese economic forum at Palace of the Golden Horses. - AZHAR MAHFOF/The Star

SERI KEMBANGAN: Iskandar Investment Bhd (IIB) and China-based real estate developer Zhuoda Real Estate Group have entered into two framework agreements to develop mixed residential and commercial projects in Medini Iskandar Malaysia in Johor.

This marks the first real estate investment by a foreign company in Medini and the biggest project investment in the area to date. The gross development value of the project is estimated at RM2.5bil while the gross development cost is about RM1.85bil.

IIB and Zhuoda subsidiary, Qingdao Zhuoyuan Investment Holdings (Zhuoyuan), will jointly develop the first two of the three-phase project. The third phase would be developed solely by the Chinese company.

Medini is IIB's flagship development in Medini North, its leisure and tourism area. It is set to come alive next year with the opening of Asia's first LEGOLAND theme park, together with a complementary lifestyle retail mall, hotels, healthcare services, offices and residential projects.

The signing ceremony yesterday was held in conjunction with the 3rd World Chinese Economic Forum in Seri Kembangan.

IIB president and chief executive officer Datuk Syed Mohamed Syed Ibrahim told a news conference the project was expected to be completed over the next 10 to 15 years and that work on the first phase would start next year.

The first framework agreement is for the formation of a joint venture between IIB and Zhuoyuan to develop a residential project on an 18.14-acre plot in Medini North. The project, 80% owned by Zhuoyuan, would have a total sales value (TSV) of RM157.6mil, with the estimated investment reaching RM1.2bil.

The second framework agreement is for the sale of lease for a 9.74-acre plot, also in Medini. Zhuoyuan would carry out a mixed-use development on the site. It would have a TSV of RM70.8mil and the total investment is estimated at RM520mil.

“Zhuoyuan's investment in Medini is a clear affirmation of the company's confidence in the growth potential of Iskandar Malaysia and IIB as its investment partner to take advantage of opportunities in South-East Asia,” Syed Mohamed said.

“As a strategic partner of the 3rd World Chinese Economic Forum, we encourage more businesses from Malaysia and China to seek ways to further enhance cooperation, despite the current global economic uncertainties, and subsequently contribute towards the quest of reviving the Silk Road,” he added.

Said Zhuoda chief operating officer Yang Han Qing: “This signing is a milestone for Zhuoda's maiden overseas investment and a landmark in Zhuoda's history to become a global company.”

Iskandar Malaysia has recorded committed investments of RM77.82bil from various sectors as of September this year, according to Iskandar Regional Development Authority.

By The Star

Semi-detached units come with private lifts and centralised vacuum system

Ready for living: (Above) The USJ One Park Twin Villas features a sleek architecture with features (right) such as air-conditioning units, centralised vacuum system, a jacuzzi in the master bedroom suite, a private lift and an intercom system connected to the security post.

As urban consumers get more sophisticated, so do their homes. With this in mind, the USJ One Park Twin Villas is designed for those with a taste for modern lifestyle.

BHL Group of Companies executive chairman Datuk Lim Boo Kian said the three-storey semi-detached units come with private lifts, centralised vacuum system and a whirlpool jacuzzi.

“Having a lift inside the three-storey house gives it an exclusive feel. It is also good for families who live with their elderly parents as it gives the old folks more mobility around the house.

“The lift is imported from Sweden and comes with a two-year warranty,” said Lim during the launch of the development at its sales gallery in USJ 1, Subang Jaya.

He said the centralised vacuum system was also a convenient feature which makes cleaning the house easier.

“There are several points around the house and all you need to do is connect the hose to it and start vacuuming. It is hassle-free and you change the bag once or twice a year,” said Lim.

There are only 36 units available for sale, each with a built-up area of 3,772sq ft and comes with air-conditioning units and sanitary ware.

Besides the Twin Villas, the entire USJ One development also consists of 61 terrace houses and two blocks of condominiums, both of which are already 90% sold.

All three developments are nestled within a gated community with its own landscaped park.

“All the houses also have an intercom system which is linked to the security post. There are about 30 units of CCTV along our perimeter fencing so residents will not have to worry about security,” said Lim.

He said residents of the houses can also use the facilities in the condominium like the swimming pool, gymnasium and rooftop garden.

The selling price of the Twin Villas units is from RM2.388mil onwards.

For details, call 03-2278 1118.

By The Star

Latest homes in Bandar Enstek take advantage of natural lighting

Boasting a tranquil setting, Bandar Enstek appeals to those who want quick access to the KL International Airport (KLIA) in Sepang.

The project is approximately 15 minutes from the airport and less than half-an-hour from Putrajaya.

Located in Negri Sembilan, it is also accessible by the Elite, PLUS and MEX highways.

Bandar Enstek, wholly-owned by TH Properties Sdn Bhd, is projected to have a gross development value of RM9.2bil upon completion in 2025.


Living it up: The show unit of a Mediterranean-styled house.

TH Properties is owned by Lembaga Tabung Haji.

The total land area is 2,071.58ha and it is freehold.

TH Properties sales and marketing head Mohd Iskandar Omar said Bandar Enstek’s selling point was its proximity to the airport.

“Although it is situated outside the Klang Valley, it is not too far from Kuala Lumpur.

“It is a quiet and safe environment,” he said to members of the press during a site visit.

The current development phase — timur@enstek was launched in December 2006.

An upcoming project in timur@enstek known as Rembulan, offers 124 units of semi-detached houses.


Spacious: Bungalows are available in Bandar Enstek.

The homes are spread over 12.54ha of freehold land.

This low-density project is scheduled to be launched this month and expected to be completed by November 2013.

Priced between RM622,400 and RM1.069mil, the four designs which are available range from built-up areas of 2,555sq ft to 3,117sq ft.

The houses are also equipped with security alarm systems.

The intermediate units have five bedrooms and five bathrooms while corner units have six bedrooms and six bathrooms.

“It is spacious, 28% to 35% bigger than houses in Kuala Lumpur and Petaling Jaya.

“It is suitable for large families. The designs allow for efficient air flow and natural lighting,” Mohd Iskandar said.

He said the target markets were the middle- to high-income groups.


Overview: Mohd Iskandar with a model of Bandar Enstek.

“Some may buy it as a place for them to retire to,” he added.

All purchasers will be entitled to free legal fees and disbursements for the Sales and Purchase Agreement, and stamp duty for the Memorandum of Transfer will be borne by the developer.

To serve the daily needs of the community, village@enstek, a neighbourhood commercial development, offers F&B outlets, a mini market, laundry services, clinics and even a spa.

Substantial acreage in Bandar Enstek has been devoted to an area called Bandar Enstek Educational Complex, which will include several institutions of education from secondary to tertiary level.

As for industrial development, techpark@enstek covers an area of 212.06ha, touted to have the largest cluster of local and international biotechnology companies in Malaysia.

It is fast becoming a hub that caters to the needs of investors such as Bomba Malaysia, Jakim, Coca-Cola Bottlers Malaysia Sdn Bhd and Felda. TH Properties is also constructing an 18-hole golf course and clubhouse, and other community-centric facilities.

For details, visit www.th-properties.com or call 06-799 7886.

By The Star

TH Prop expects wave of interest in Bandar Enstek

SEPANG: TH Properties Sdn Bhd, the property arm of Lembaga Tabung Haji, a pilgrims' fund management institution, expects a new wave of investments next year from local and foreign parties at its Bandar Enstek development in Sepang, Selangor.

TH Properties chairman Datuk Azizan Abd Rahman said although the market now is a bit uncertain as far as the global economy is concerned, he is optimistic the company will be able to attract investments of up to RM60 million.

"We are in negotiations with a few multi-national companies (MNCs). We are also not keeping our doors close on Google Inc, which once said it was looking to invest here.

"Should they (Google) decide to make an investment in Malaysia, we hope to attract them back here," Azizan said yesterday at the launch of Rembulan, a new series of houses within "timur@enstek" yesterday.

Since its inception, Bandar Enstek has attracted investments of more than RM2 billion from government bodies and the corporate sector.

Bandar Enstek is a 2,046-hectare integrated township located nearby the Sepang F1 Circuit and the Kuala Lumpur International Airport.

It comprises four main components namely residential, a commercial hub, institutional zones and techpark@enstek. timur@enstek is the third residential phase for the development.

On Rembulan, TH Properties is introducing 124 semi-detached homes each priced between RM622,400 and RM1.07 million, or collectively at RM95 million.

Azizan is confident that the houses will attract buyers from within the neighbourhood and Kuala Lumpur.

""As far as the property market is concerned, I would expect a bit of a slowdown next year. But since we are targeting the middle income group, I don't think our development will be affected.

"Any major setback in the economy, the speculative kind of investment would suffer. Here, we don't have speculators. They buy and stay for their own use," he added.

Azizan said TH Properties aims to start developing an 18-hole golf course on 64ha surrounded by resort homes at Bandar Enstek by mid-2012.

It is also looking to partner a company in India to jointly undertake a luxury development in the area.

"While we are deciding to move to the luxury market, our base will always be the middle income segment. We just need some form of recreation for the MNCs and other investors at the development," Azizan said.

By Business Times

Sunway not in talks with Sime on Iskandar job

Sunway Bhd today said it is not involved in any discussion with conglomerate Sime Darby Bhd to jointly develop townships in Iskandar Malaysia, Johor.

Nevertheless, as a leading property and construction company, Sunway said it is constantly on the lookout for property development opportunities locally and abroad.

"We will keep our shareholders appropriately notified through timely announcements made to Bursa Malaysia Securities Bhd," it said in its filing to the exchange in Kuala Lumpur.

It was Bernama reported yesterday that the two companies were likely to jointly develop townships in Iskandar Malaysia.

Quoting industry sources, the report said the government was allocating land for the joint development and that the companies were buying the concession land for a good price.

The sources said it was also understood that both companies would sign a memorandum of understanding in the next few weeks, and that such a collaboration between government-linked companies (GLCs) and the private sector was best for Malaysia's future development.

The joint development could be a strong message for Malaysian companies to forge relations with GLCs and play their part in the next stage of the country's development.

Joint development between GLCs and the private sector was also stressed by Deputy Prime Minister Tan Sri Muhyiddin Yassin in building a sustainable and inclusive economy and drive Malaysia towards developed nation status by 2020.

By Bernama

Iskandar lands RM1.8b deal from Qingdao

Iskandar Investment Bhd, the catalytic project developer of Iskandar Malaysia, has secured a RM1.8 billion real estate investment from China-based company, Qingdao Zhouyuan Investment Holdings.

Qingdao Zhouyuan is a subsidiary of Hebei-based real estate developer, Zhouda Real Estate Group.

President and Chief Executive Officer Datuk Syed Mohamed Ibrahim said the investment project, over two phases, will commence next year and be over a period of about 10-15 years.

"This is the first real estate investment by a foreign company in Medini Iskandar Malaysia and the biggest project investment in the area, to date," he added.

He was speaking to reporters after signing two framework agreements with Qingdao Zhuoyuan for the development of mixed residential and commercial projects in Medini Iskandar here, today.

By Bernama

Concerned over hill development in Cheras

All too familiar : The earth works on a slope near Jalan Senjolong, Cheras, has raised concerns among nearby residents.

RESIDENTS of Taman Pertama, Taman Cantik and Taman Bukit Ria in Cheras, Kuala Lumpur have expressed their concern over a nearby development on a hill near Jalan Senjolong.

They have noticed some earth works and land clearing being carried out on a Class 3 slope. The development on the 0.809ha land will see luxury condominiums being built next to a forest reserve near Pudu.

The development order had already been issued by KL City Hall (DBKL) some years back.

The project is due to be completed in three years.

A meeting was held with some concerned residents together with the developer, DBKL representatives and Cheras MP Tan Kok Wai.

Issues raised by the residents include the use of residential roads by the lorries carrying construction materials, safety and security — as the development is located on a hillside — and, protection of the environment.

Tan also raised a few issues like the use of the access road from Taman Kopena, signboard indicating development, the use of reinforced concrete wall and a topography map and monitoring of the slope.

“Residents are feeling uncomfortable and unsafe because of the slope works being carried out at the site.

“They are already aware of many hillside tragedies, so they don’t want an unfortunate incident to occur.

“Assurance is needed because the local community have been informed about what is happening,” he said.

According to the developer Orando Holdings Sdn Bhd, a 20.1m-wide road will be built from the site leading to Pandan Perdana.

Its executive director Eng Wei Chun said: “We had obtained approval from six departments — Ikram (Public Works Institure), Public Works Department Slope Engineering Branch, Forestry Department, DBKL, and Land and Mineral Office.”

He added that they had adhered to all the regulations and building guidelines before obtaining the development order.

It was mentioned that silt traps would be built after earth works and clearing were done to divert water into temporary drains.

This will ensure that any erosion caused by the water can be discharged properly.

After a series of discussion, the developer agreed to gather all the relevant materials pertaining to the development to be scrutinised by Tan and the community.

By The Star

Kimlun buys land in Nilai for RM27m

PETALING JAYA: Kimlun Corp Bhd is moving into property development, and is buying nine parcels of land totalling 17.3ha in Negri Sembilan for RM27.36mil cash.

The engineering and construction services provider told Bursa Malaysia, the move was in line with the group's strategy to go up-stream into property development.

By The Star

KL Metro launches RM400m Negri water homes project

SEREMBAN: Kuala Lumpur Metro Group has launched its latest water homes project called The Hibiscus Port Dickson in Pasir Panjang here.

With a gross development value of RM400 million, the project features 642 high-end resort homes with sizes ranging from 770 sq ft to 872 sq ft.

The project, which comprises three phases, started in August this year and is expected to be completed by 2014.

KL Metro managing director Datuk Low Tak Fatt said 108 units of the first phase had been sold out mainly to foreign investors from Hong Kong, Singapore, Macau and Indonesia.

"Every unit has its own swimming pool and steam sauna room. This is the luxury that other resorts do not offer," he said.

KL Metro also officially opened its five-star resort, Grand Lexis Port Dickson.

The resort offers 323 villa comprising 166 Water Homes, 118 Garden Homes and 39 Skypool Villas.

All units are based on a "water homes" concept and each has its own swimming pool.

"Grand Lexis will be the flagship of our strategic branding of true Malaysian warm hospitality," said Low.

Since its opening in November 2009 until August this year, the resort has attracted 550,000 tourists with the majority of them foreigners, mainly from the Asia-Pacific region. Low said this has contributed to the tourism sector in Negri Sembilan.

The Grand Lexis and the Lexis Port Dickson resorts, formerly known as The Legend Water Chalets, are currently under the management of KL Metro

By Business Times

Lend Lease Projects to focus on end-to-end property solutions

KUALA LUMPUR: Project management company WTW Bovis and Bovis Lend Lease has been rebranded as Lend Lease Projects.

All businesses in the Lend Lease Group throughout the world are now operating under one brand, "Lend Lease".

According to Lend Lease, it is implementing a unified brand to clear up confusion in some areas of the marketplace about who Lend Lease is and what it does. It is also to assist the group to drive maximum value from its integrated offering.

Lend Lease's managing director in Malaysia, Dinesh Nambiar, said Lend Lease has been operating in the Asian market for 38 years, and in Malaysia for 30 years.

"Our clients will still receive quality service and commitment that they usually get from us. We have made a name for ourselves in project management and design & build projects.

"Through Lend Lease's global integrated business approach, moving forward, we will be focusing on exploring end-to-end property solutions such as development, investment management, and asset & property management with our clients," he said in a statement.

Dinesh said the company's business in Malaysia is now known as Lend Lease Projects (M) Sdn Bhd.

The company expects the major rebranding activities to be completed by June next year.

He said current construction and development projects that are due to be completed before December 31 this year will retain their existing branding.

All other major projects will be rebranded from now on and all new projects will be branded to Lend Lease.

By Business Times

Exhibition aims to draw higher property transactions this year

Eager buyers: Throngs of visitors flock to Perfect Lifestyle in search of great deals, bargains and rewards.

As an excerpt from a famous English poem goes, “Home is where the heart is”, this must be especially true for home buyers in Malaysia as property transactions are expected to exceed RM100bil in values this year from RM96.77bil in the first 11 months the year before.

According to the Valuation and Property Services Department, residential sales were chalking up some 62% of that value. Home owners are in for a treat as the 13th edition of the country’s premier Home & Living exhibition lands in Kuala Lumpur in November.

Perfect Lifestyle ’11, from the creators of the popular Perfect Livin Home and Lifestyle exhibition, opens its doors again at Mid Valley Exhibition Centre Kuala Lumpur from Nov 25 to 27.

Strengthening its position as the leading provider of a hassle-free one-stop solution platform for renovations, refurbishments, decorations, home innovations and improvements, Perfect Lifestyle ’11 will aim to visitors with an even higher level of satisfaction in terms of choice, deals and ideas.

With over 300 booths from more than 100 industry-leading exhibitors, Malaysia’s foremost exhibition is sure to whet the appetite of consumers in the home and living industry.

The exhibition has been strategically positioned at the tail-end of 2011 to capture the convergence of the fundamental needs of both the exhibitors and visitors. Exhibitors will be offering handsome deals for their products and services to boost year-end sales while visitors will make the most of the attractive deals to spruce up their homes in time to usher in 2012.

It’s been an insanely fast-paced year in terms of technological innovations in the electronics and electrical world.

As such, it’s bound to be another tremendously exciting affair on all fronts as major brands such as Panasonic, LG, Sharp, Electrolux, Joven and LeBensstil continue to showcase every conceivable items one could possibly want or need in our homes as well as cutting-edge innovations of the year.

For those in search of bedding solutions, popular brands such as Napure, Tempur and SpringAir will leave everyone spoilt for choice.

“The home is where one pours in one’s heart and soul,” said the exhibition organiser CNM Events Marketing managing director Datuk Adriana Law.

A self-made entrepreneur, Law is no stranger to the joys and intricacies of home improvements as she currently splits her time between running a business and her new home that is undergoing massive renovations.

“The residential property sub-sector remains the main mover of the property market. Perfect Lifestyle’11 will have plenty in store for everyone,” said Valuation and Property Services Department director-general Datuk Abdullah Thalith Md Thani.

Apart from an assembly of top exhibitors, the organisers pack the shows with an avalanche of activities and goodies such as guaranteed gifts, exciting contests, door gifts, daily lucky draws and cooking demonstrations.

By The Star

High demand for industrial properties in Iskandar

JOHOR BARU: Property developers in Iskandar Malaysia have been urged to venture into industrial park projects due to a surge in demand for industrial properties here.

Johor executive councillor for international trade and industry Tan Kok Hong said it was timely for developers to focus on this segment apart from the residential properties area. “Johor is still strong in the manufacturing sector and it remains one of the top three destinations for foreign direct investments (FDIs) in the country,’’ he said.

Tan said this at the signing ceremony between Telekom Malaysia Bhd and UMLand Bhd’s subsidiary Dynasty View Sdn Bhd for the deployment and provision of TM’s high speed broadband (HSBB) network infrastructure and services.

Meanwhile, Newcastle University MedicineMalaysia was officially launched in EduCity Iskandar Malaysia yesterday. The 13.5-acre project is Newcastle University’s first overseas venture and is the only British Medical School recognised by the General Medical Council outside of the UK. The RM90mil campus marks the successful completion of Iskandar Investment Bhd’s first development project on the back of completed infrastructure works earlier in the year.

By The Star

Mah Sing inks MoU with Thailand's Central Pattana for potential JV

KUALA LUMPUR: Mah Sing Group Bhd today signed a memorandum of understanding (MOU) with Central Pattana Public Co. Ltd, to jointly study the potential investment of developing and managing a one million sq ft retail mall, within Icon City in Petaling Jaya, through a joint venture and or partnership.

"We believe the potential joint venture with Central Pattana will add vibrancy and further uplift the overall appeal of Icon City with the latest in retail offerings and shopping experiences of world-class standards," said Mah Sing's Group Managing Director cum Group Chief Executive, Tan Sri Leong Hoy Kum, in a statement today.

Icon City is Mah Sing's flagship integrated commercial project with an estimated gross development value of about RM3.2 billion.

The integrated development comprises shop offices, retail lots, small office versatile offices and serviced residences in Phase 1.

It also comprises the retail mall, hotel, serviced residences, boutique offices and corporate office towers in the second phase.

Central Pattana is Thailand's largest retail developer currently managing 16 shopping centres, six office buildings, two hotels and two residential projects.

By Bernama

Singapore home sales unlikely to beat last year’s record

SINGAPORE: Sales of new private homes may come close to last year's record high, but they are unlikely to surpass the figure, with global economic uncertainty affecting demand, according to experts.

Home sales for the first nine months of this year came in at a slightly more robust 12,301 units compared with 12,051 units in the same period last year.

However, experts said a slower final quarter was likely to leave the final figure below last year's tally. Developers sold a record-breaking 16,292 homes last year as rock-bottom interest rates and pent-up demand from first-timers and upgraders drove the property market to a new high.

Experts noted that low interest rates and a sound local economy should underpin private home buying demand.

However, the gloomy economic outlook has dampened market sentiment. Four rounds of cooling measures the latest in January have also removed the speculative froth.

Colliers International research and advisory director Chia Siew Chuin said the ongoing economic turmoil in the West would rein in demand to some extent. The year-end festive season and school holidays could also sideline potential buyers.

“Considering these factors, demand for new homes in the final three months of the year may come in slightly lower than that seen in the third quarter of this year,” Chia said. She expects the full-year sales volume to be between 15,000 and 16,000 units.

But Credo Real Estate research and consultancy head Ong Teck Hui noted that though cooling measures had cut demand from speculators and short-term investors, demand from genuine buyers had persisted. It was possible this year's total would be close to last year's, he added.

CB Richard Ellis Research executive director Li Hiaw Ho said the market had turned more cautious on the government's outlook of slower economic growth due to eurozone woes.

“It is unlikely that we will see the same level of take-up as the second and third quarter, even with prices remaining stable. While we expect new home sales volume this year to exceed 15,000 units, it remains to be seen whether it can surpass the record volume last year.”

Already, secondary market transactions had fallen considerably. The 3,604 units sold in the three months to Sept 30 was the lowest quarterly figure since the market recovery in mid-2009, Ong noted.

By Straits Times Singapore

Chinese home buyers not so easy to please

BEIJING: China thought it had a good plan: Bring down soaring house prices so millions of frustrated wage-earning families could afford new homes, and social harmony would follow.

However, furious protests by existing home-owners against price-cuts on new developments show that the road to real estate equilibrium is a rocky one.

For every aspiring home buyer in China thwarted by a speculative property bubble that has seen house prices in key cities jump nearly 10-fold in 10 years, an existing home-owner is anxious to see the biggest investment they're likely to ever make keep rising.

Anxiety built to anger in Shanghai on Oct 22 after Longfor Properties cut prices on the latest phase of a housing development to revive stalling sales at the site.

A mob of about 300 people smashed up the development's sales and demonstration centre, according to local media reports.

All had bought homes in earlier phases of the project at prices as much as 30% above current selling levels which Longfor insists just reflect market conditions.

“We decided the price according to market demand,” the company said in a statement emailed to Reuters. “The promotion, which ended on Oct 20, was an effective one when the company proactively grasped the right market opportunity.”

Hundreds of home-owners were on the same Shanghai street a day after the Longfor incident, staging a smaller protest in a Green Land Group development. There's been uproar at sites developed by China Overseas Land, Sino-Ocean Land and Huaye Real Estate Co.

Protests have flared in Beijing as well as Shanghai and threaten to spread. Social unrest is anathema for China's ruling Communist Party.

“The protests run an alarm to the public that gone is the time when home prices only rise and never fall. Investors need to be cautious,” the People's Daily, the top party newspaper, said in an opinion piece posted on its website on Oct 26.

Property is a touchstone issue in the world's second-biggest economy, generating around 10% of China's GDP.

Besides would-be buyers and profit-hungry developers, local governments across the country rely on income from land sales to service debts estimated at 10.7 trillion yuan (US$1.7 trillion) and fund construction of roads, railways and schools.

By Reuters

iProperty launches commercial property site

Region-wide cooling measures by the government on the residential property sector and the rising yield in the commercial sector has prompted the launch of CommercialAsia.com, the region’s first comprehensive website dedicated to commercial and industrial properties across Asia-Pacific.

The new website has the largest database of commercial and industrial property listings in the region with over 150,000 current listings, a figure expected to grow to over 500,000 by the end of 2012.

Spearheaded by The iProperty group, a leading Asian online property portal which reaches out to 3.5 million unique visitors and 25,000 real estate agents per month, the launch of CommercialAsia.com is timed in anticipation of the market trend.

Its chief executive officer, Shaun Di Gregorio said: "The iProperty Group’s data across Malaysia, Singapore, Hong Kong and Indonesia between 2010 and 2011 shows an upward trend in searches for commercial property."

With the government introducing cooling measures across Asia-Pacific and the fear of possible recession in the US and Europe and assumption of that impacting Asia-Pacific, the residential sector is softening as investors adopt a ‘wait-and-see approach, he said at the launch in Singapore.

By Bernama

Oversupply of retail and office space

KUALA LUMPUR: The Klang Valley will face an oversupply of office and retail space within the next two to three years, according to property consultancy CB Richard Ellis (M) Sdn Bhd.

Capital values for residential units would see some increases in 2012, but at slower rates compared with the past 18 months.

CB Richard Ellis executive chairman Christopher Boyd said while 2011 was a strong year in terms of demand for office space in the Klang Valley, rental values might succumb to an oversupply situation within the next 18 months.

“Short-term demand for office space is stable but unlikely to grow sharply,” he said at a talk entitled Kuala Lumpur Property Market In Times Of Uncertainty, which was organised by MIDF Research here yesterday.

Boyd said that total office space supply in the Klang Valley stood at 80.8 million sq ft at the end of the first half of 2011 (compared with 80 million sq ft at the end of 2010).

However, it was estimated that an additional 25 million sq ft of office space would come onstream in the Klang Valley by 2015 (excluding mega projects such as the Naza group's KL Metropolis development, Warisan Merdeka tower and the Kuala Lumpur International Financial District).

According to Boyd, vacancy rates in Kuala Lumpur are under 13%.

“This is not an alarming number, but vacancy rates are expected to increase as more supply comes onstream.” A report by CB Richard Ellis also noted that prime gross asking rentals were flat at RM7 per sq ft with only a handful of buildings above this level.

Since rising steadily from 2002 to 2008, rentals at top city centre buildings have remained mostly flat for the past two years.

“Asking rents at most top buildings in the city centre are within the RM6 to RM10 per sq ft per month range, with only a few select buildings, such as Petronas Tower 2 and Maxis Tower, achieving monthly rents of RM10 per sq ft and above,” said the report.

Boyd said recent average transaction prices of Grade A office space generally range between RM800 and RM900 per sq ft. “But there are higher prices than these being achieved in the market. We have recently seen prices of RM1,100 sq ft or more in Kuala Lumpur Sentral and SP Setia Bhd's KL Eco City.”

Meanwhile, CB Richard Ellis managing director Allan Soo said that the Klang Valley would overtake Singapore in terms of retail space per capita. Soo said as of the third quarter of 2011, total retail space supply in the Klang Valley was 43.7 million sq ft in 133 shopping centres and hypermarkets which was equivalent to 7.1 sq ft per capita (based on population of 6.1 million).

“This is higher than Bangkok, Thailand which stands at about 6.5 sq ft per capita, and equivalent to Singapore. However, it is a landlords' market in Singapore where malls are well connected by MRT (mass rapid transit) and are doing well. In the Klang Valley, it is the reverse - the tenants are the kings.”

Soo estimated that by 2014, the Klang Valley will have 53 million sq ft of retail space in 149 malls and hypermarkets.

However, Soo pointed out that only about 43 shopping centres and hypermarkets out of the existing 133 (or 30%) were performing well.

A report by CB Richard Ellis said the next rental review for established shopping centres would be in 2013 and rents may hit RM122 per sq ft. On residential property, Boyd said the pace of capital appreciation would slow in the next two years as new supply come onstream. In the condominium segment in Kuala Lumpur, total supply grew by 11% since end-2010 to 63,994 units in the first half of this year.

The supply figures included all projects with average prices of RM350 per sq ft and above.

While there had been a shift in buyers' preference towards smaller and more affordable units, Boyd said average asking rentals have declined in prime areas of Kuala Lumpur City Centre (KLCC) and Mont Kiara.

“In some cases in the KLCC area and and Mont Kiara, condominium rentals have halved in the last two years.” Rental rates in the three main condo markets (KLCC, Bangsar and Mont Kiara) on a per sq ft basis have declined since 2007, reflecting weaker demand for rental units coupled with increased supply.

Boyd also pointed out that new housing projects in the Klang Valley had begun to pick up in the first half of this year, with 15,030 units.

This is contrasted with a trend of falling incoming supply, new completions and housing projects in the Klang Valley since 2004.

From 2004 to 2007, there were new housing projects supplying more than 60,000 units each year.

However, the supply from new housing projects dipped to 41,583 units in 2008 and subsequently, between 22,000 and 25,000 in the following two years.

“The supply stream of new housing units fell in 2008. I do not think it was just the result of the global financial crisis. As building costs were rising sharply without selling prices coming up to match them, perhaps developers took the view they should hold back. And this contributed to the fast rising housing prices in the last two years.”

By The Star

Office property market seen stable

KUALA LUMPUR: Malaysia's office property market is likely to remain fairly stable next year, but oversupply is expected in the next 18 months, says CB Richard Ellis (CBRE) Malaysia Sdn Bhd, a property consultancy firm.

The oversupply situation is due to a competitive rental market, its executive chairman Christopher Boyd told reporters after a luncheon talk on "Klang Valley Property Market Overview", hosted by MIDF Amanah Investment Bank Bhd here today.

However, he said, the arrival of multinational corporations in Kuala Lumpur due to the low operating costs as well as the young and well-educated population would help stabilise the office market.

Boyd said the supply situation has improved from two quarters ago, with some projects being pushed back or cancelled, but others are still on the drawing board.

He added that major developments including Naza KL Metropolis, Tan Chong Segambut, Warisan Merdeka and KL International Financial District could have a major impact.

By Bernama

Iskandar Malaysia property market set to grow

JOHOR BARU: The property sector in Iskandar Malaysia will benefit immensely with the improvement in connectivity and accessibility within the economic growth corridor.

Iskandar Regional Development Authority (Irda) chief executive officer Ismail Ibrahim said this could be seen from many new property projects being built in recent years.

“Better accessibility and connectivity will help push up demand as well as prices for properties within Iskandar Malaysia,” he said at an event to mark the completion of three new traffic interchanges.

These are the Bukit Indah-Taman Tema 1 and Taman Tema 2 interchanges costing RM135mil, Jalan Abu Bakar-Jalan Lingkaran Dalam interchange (RM17mil) and Indahpura elevated interchange (RM36.2mil).

Ismail said the interchanges are expected to be open to motorists between now and the first quarter of 2012, pending approval from the Malaysian Highway Authority.

He added that the new interchanges would help to reduce traffic congestion between 20% and 30% along existing roads and shorten travelling times between 15mins and 20mins.

“Apart from upgrading the road network, we will also focus on improving the public transportation system in Iskandar Malaysia,” he said.

Ismail said relevant parties in Malaysia and Singapore were already discussing the improvement of people’s movement between Iskandar Malaysia and Singapore via a Light Railway Transit system by 2018 or 2020.

He said, to date, Irda had spent RM4bil from a RM6.38bil allocation to undertake infrastructure works such as road improvement, flood mitigation, river cleaning and public housing.

The country’s first economic growth corridor Iskandar Malaysia, was launched on Nov 4, 2006, it covers 2,217 sq km located in the southernmost part of Johor.

From 2006 up to the third quarter of this year, it has attracted RM77.82bil in committed investments, of which 60% is from domestic investors and 40% from foreigners.

By The Star

Sunway REIT property income up 27.2pc

KUALA LUMPUR: Sunway Real Estate Investment Trust (Sunway REIT) recorded a 27.2 per cent jump in its net property income to RM70.3 million for the quarter ending Sept 30, 2011 over that of the previous corresponding period, said its manager Sunway REIT Management Sdn Bhd.

The company attributed the strong performance to the higher contributions from the initial portfolio of eight assets and Sunway Putra Place of RM9.7 million and RM5.3 million respectively.

Sunway REIT’s net realised income rose by 15.1 per cent to RM44.2 million in the same period from that of the previous corresponding period.

Overall, Sunway REIT has performed better by RM5.8 million after taking into account the net loss of RM1.8 million by Sunway Putra Place due to no income contribution from Sunway Putra Hotel in the first quarter of its current financial year.

Sunway REIT secured full control and possession of Sunway Putra Place including the hotel on Sept 28 2011, and the manager expects positive contribution for the financial year ending June 2012.

The manager announced distribution per unit of 1.75 sen for the first quarter of its current financial year, representing an increase of 15.9 per cent compared to the previous corresponding period. This translates into an annualised distribution yield of 6.3 per cent based on Sunway REIT’s closing price of RM1.11 on Sept 30, 2011.

Sunway REIT Management chief executive officer Datuk Jeffrey Ng said: “We are positive on the prospect of the portfolio for this financial year amidst headwinds in the external environment. With the full possession and control of Sunway Putra Place, the focus now is to turn around the property and reposition the property into a must-visit destination for local visitors and foreign tourists."

"We are confident that upon the completion of the refurbishment exercise, the asset will enjoy a quantum leap in income as well as capital appreciation in the asset value," he added.

By Bernama