Luxury island plan for Rebak

KUALA LUMPUR: DRB-HICOM Bhd is drafting plans to turn Pulau Rebak in Langkawi into a holiday magnet for the rich and famous.

The group wants to develop a "boutique" luxury holiday concept there to match the likes of The Residences at W Bali, Bvlgari Residences and Banyan Tree Ungasan in Bali, Six Senses Private Residences in Vietnam, The Yamu in Phuket, W Residence in Koh Samui and St Regis Saadiyat Island Resort in Abu Dhabi.

"The time has come for Malaysia to have luxury holiday residences that can woo the rich and the famous globally to pick Pulau Rebak as their preferred holiday destination," DRB-HICOM group managing director Datuk Seri Mohd Khamil Jamil said in a statement yesterday.

Mohd Khamil said Pulau Rebak's strategic location and the government's plan to upgrade the holiday haven to be on par with the world's top holiday islands would serve as a catalyst to its aspirations.

"The launch of the Langkawi Tourism Blueprint by Prime Minister Datuk Seri Najib Razak recently, entailing an estimated RM5 billion investment over the next five years, was a welcome initiative.

"I'm confident with the blueprint, coupled with the cooperation and participation of all parties, the government's estimate to double tourism revenue to RM3.8 billion via the arrival of three million tourists to Langkawi by 2015 will be realised," Mohd Khamil added.

The absence of an ultra luxury concept property development on a local holiday island has provided an opportunity for DRB-HICOM to explore the prospect, he said.

"We have been discussing the Pulau Rebak development plan since 2009 and the feedback received from international development consultants, residential property owners and world-class holiday companies is very encouraging," Khamil added.

By Business Times

RM78mil facelift for Singapore Marriott Hotel

New hotel rooms at the Singapore Marriott will have Eames Desk Chairs as dictated by Tang Holdings chairman Tang Wee Kit.

Tang Holdings will invest RM78.4mil (S$32 million) in the refurbishment of Singapore Marriott Hotel on Orchard Road. It is the largest renovation project to date, in the luxury hotel’s 16-year history, and is already underway with Phase One nearing completion.

“The Singapore Marriott Hotel is the crown jewel of Tang Holdings and with every treasure, it is imperative we keep it at its prime,” said Tang Holdings chairman and managing director Tang Wee Kit, who has added a personal touch to the refurbishment exercise. “The hotel has undergone significant refurbishments in the past but we deemed it time to overhaul a number of the spaces to ensure we retain our competitive edge.”

Phase One of the property renovation includes the make-over of the hotel lobby, now called the Marriott Great Room and removes traditional architectural barriers dividing the lobby space into warm open-plan zones where guests can choose to work, relax, drink or dine. The front desk is set against a dramatic, oriental-inspired fretwork, reflecting an Asian influence which interior design firm Hirsch Bedner Associates (HBA) will weave throughout the property, blending east with west.

The second phase of the renovation is currently in progress and consists of a major overhaul of the hotel’s popular Marriott Cafe, Crossroads Cafe and all guest rooms. The project will be completed by April next year.

Hotel general manager Antony Page said, “Our goal is to provide guests with a timeless experience during their stay with the Marriott. We want to create sophisticated and spacious rooms with all the amenities, a modern-day traveller would appreciate. For example, all 372 rooms will be smartly decorated with ergonomically optimised furniture and thoughtful state-of-the-art finishing, reflecting the key personalities of a savvy urban dweller – sophisticated, tasteful, and sleek.”

Rooms will take on a neutral colour palette with bold accent fabrics. Most notably bathrooms will be reconfigured to offer guests greater space with a large walk-in waterfall shower and resting bench as well as extended vanity area, while the newly-installed 46-inch Samsung Full-HD Smart TVs provide guests entertainment experiences. Two signature 1956 leather and enamelled Eames Desk Chairs will be a prominent feature in each new guest room, personally selected by Tang Wee Kit, who has worked closely with HBA to fulfill his desired new look.

A number of aesthetic changes will be made to Crossroads Cafe whilst Marriott Cafe will undergo a complete renovation.

The Singapore city centre hotel opened in 1995 and has been the recipient of a number of awards and accolades. The property recorded 39,243 guests in 2010 and will complete another successful year this month.

By The Star

S’pore loses lustre, investors considering other options like Hong Kong

SINGAPORE: The heavier stamp duties announced last week may have already dented Singapore's standing as a major property investment destination while giving rivals such as Hong Kong a boost, said analysts.

Britain-based consultancy Black Brick Property Solutions said it has received inquiries from Asian and overseas investors who had been thinking of investing in Singapore property, but who have been deterred by the new tax rules.

Other property agencies said they expected more clients to ask about their investment options after the festive period.

The new measures unveiled last week included an extra stamp duty of 10% on a home bought by a foreigner a move expected to dampen foreign demand while increasing interest in markets such as Britain and Hong Kong that do not have restrictions on foreign buyers.

Camilla Dell, managing director of Black Brick Property Solutions, said: “Stamp duty can be significantly reduced in Britain if the property is owned in a company name. Buyers pay very little or no tax on the acquisition.” She added that the tax system was more favourable, particularly for overseas investors who pay no seller's or capital gains tax if they were not British residents. This gives them a tax break of 28% when they sell their properties.

Julian Sedgewick, director of international residential sales at Savills, said: “London, in particular, could stand out because of the good currency exchange rate between the pound and the dollar”. The exchange rate is 1 to about S$2.

Hong Kong is looking attractive too, because of the government's adoption of a non-intervention policy, meaning no restrictions are placed on foreign property investments. Its government also recently said it might reverse some of the property cooling curbs if the economic situation worsens.

Another spin-off from the stamp duty move could be that foreign developers and agencies might get more aggressive marketing their properties here as investors in Singapore look elsewhere, said Chua Yang Liang, head of research at Jones Lang LaSalle (JLL).

Although local and foreign investors with a short-term outlook would have more of an appetite for properties outside of Singapore now, many analysts predict that the pool of foreign buyers in Singapore would not dry up. The Straits Times

These include buyers from Indonesia, Malaysia, India and China.

“Businesses are still investing in Singapore and the country is still considered an attractive place to work, live and visit,” said Chua.

By The Straits Times Singapore

China's Everbright investing RM2bil in i-City

Working together: (from left) I-Bhd chairman Tan Sri Lim Kim Hong, China Enterprises Association in Malaysia president Zheng Jingbo, Chai, Chor and Zhang at the signing ceremony

PETALING JAYA: I-Bhd has entered into a 30:70 joint venture (JV) with Everbright International China to co-develop 30 acres in i-City, Shah Alam.

“The development will be done in two phases. Phase one, involving 14 acres with a GDV of RM1.5bil, will comprise a one-million-sq-ft shopping mall and two-million-sq-ft mixed residential, MSC (Multimedia Super Corridor) offices and educational institute.

“The second phase has a GDV of RM2bil involving 16 acres,” group CEO Datuk Eu Hong Chew said at the joint venture agreement signing ceremony yesterday. The event was witnessed by Housing and Local Government Minister Datuk Seri Chor Chee Heung and Chinese Ambassador Chai Xi.

Eu said phase one was expected to be completed in 2016 or 2017 while the whole project, with a GDV of RM3.5bil, was expected to be completed by 2020. Construction works are expected to start next year.

“We have developed half of i-City already and the balance would be developed by Everbright,” Eu said.

Apart from financing the construction, Everbright would also lead a consortium of Chinese companies to set up operations in i-City.

“We will be investing RM2bil with I-Bhd to develop i-City's commercial project,” Everbright chairman/CEO Zhang HuaiPu said.

There have been several major investments from China recently.

Last week. China's Shougang group announced a joint venture with Hiap Teck Venture Bhd to build an integrated steel complex in Kemaman, Terengganu.

Aluminium Corp of China has recently entered into a JV with Gulf International Investment Group Holdings Sdn Bhd and UAE-based business leader Mohamed Ali Rashed Alabbar to develop a US$1.6bil (RM5bil) aluminium smelting plant in Sarawak.

By The Star

I-Bhd in construction venture with Everbright

PETALING JAYA: I-Bhd yesterday entered into a strategic alliance with China-based Everbright International China to co-develop 12.14 hectares of land in i-City via a joint venture.

Everbright will have a 70 per cent shareholding in the venture. I-Bhd, in a statement here yesterday, said it will hold the balance stake.

Apart from financing the construction, Everbright will also lead a consortium of Chinese companies to set up operations in i-City, Shah Alam.

The development will be undertaken in two phases involving 5.66ha for the initial phase and the balance 6.47ha in the subsequent phase.

The first phase of the development is for a commercial hub with a gross development value of RM1.5 billion comprising a 92,903 sq m shopping mall and 185,206 sq m of mixed residential, MSC offices and educational institute.

By Bernama

Mah Sing disputes JV partners’ claims

KUALA LUMPUR: Mah Sing Group Bhd has disputed its joint-venture partners' claims that the joint venture agreement (JVA) for the proposed joint-venture development on 4.08 acres along Jalan Tun Razak has lapsed.

Mah Sing said Asie Sdn Bhd and Usaha Nusantara Sdn Bhd through their solicitors had taken the position that the JVA had lapsed and was of no effect from Dec 2 “as they inter alia take the position that the conditions precedent in the JVA were not met.”

“Mah Sing, however, takes a different position and maintains that the JVA has not lapsed and as stated in our announcement dated Dec 6, has waived the conditions precedent 2.6.2(b), 2.6.2(c), 2.6.2(d) and 2.6.2(e) as set out in the announcement dated Aug 2.

“Mah Sing's solicitors have today issued a letter to Asie's and Usaha Nusantara's solicitors inter alia maintaining this position.

“Together with the letter, Mah Sing's solicitors also returned the RM6.4mil deposit (with interest earned thereon) attempted to be refunded by Asie and Usaha Nusantara as Mah Sing is unable to accept the refund of the deposit,” it said.

Mah Sing had in August this year secured the development rights for a 4.08-acre parcel along Jalan Tun Razak-Jalan Pahang, which formerly housed the Pekeliling flats.

Mah Sing's wholly-owned subsidiary, Grand Pavilion Development Sdn Bhd, had entered into a joint venture agreement with privately-held Asie Sdn Bhd and its unit, Usaha Nusantara Sdn Bhd, to undertake a niche development named M Sentral with a potential gross development value of RM900mil.

By The Star

Ban Guan Hin rejects SP Setia’s extension request

KUALA LUMPUR: SP Setia Bhd's request for an extension to fulfill some conditions for its proposed acquisition of 1,010.5 acres in Ulu Langat, Selangor for RM330.1mil was not agreed by vendor, Ban Guan Hin Realty Sdn Bhd.

According to SP Setia, in filing to Bursa Malaysia yesterday, conditions precedent included the approval of the Estate Land Board to be obtained for the sale and transfer of the said land to the purchaser.

“The purchaser is currently seeking legal advice on its position under the sale and purchase agreement and will seek the appropriate relief from the court, if necessary,” it said.

SP Setia had planned a mixed development for the land and was committed to building starter homes priced from RM300,000 onwards.

By The Star

Halifax expects British house prices to be stagnant for next year

LONDON: Britain's housing market is likely to stagnate in 2012, with low interest rates offset by a squeeze on household budgets, according to mortgage lender Halifax.

In its outlook for next year, Halifax said it expected house prices to end 2012 in a range of down 2% to up 2%. Prospects for Britain's economy were “particularly uncertain” but the likelihood of the Bank of England leaving interest rates at a record low 0.5% for the foreseeable future would help support the market, it said. 

“Overall, we expect continuing broad stability in house prices nationally during 2012. Prices are again likely to end the year at levels close to where they begin with the market continuing to lack any real direction,” said Halifax economist Martin Ellis.

However, demand for homes would be constrained by rising unemployment and the weak outlook for growth.

“These pressures will come from a combination of subdued earnings growth, high (but falling) inflation, the substantial fiscal tightening that is taking place and an ongoing rebalancing of household sector finances with many families seeking to reduce their debts,” Ellis said.

Meanwhile, Britain had 11% more houses valued at 1mil or more available for purchase in the third quarter than it did a year earlier, Investec Specialist Bank said in a report yesterday.

 By Agencies

Housing regulator sues Chicago

WASHINGTON: The Federal Housing Finance Agency said it was suing the city of Chicago to prevent it from enforcing a recently amended ordinance dealing with vacant properties.

FHFA said it was acting on its own behalf and as the conservator for Fannie Mae and Freddie Mac and said it had taken the action reluctantly after trying unsuccessfully to work the issue out with the city.

By Reuters

PLB Land to buy land in Penang

KUALA LUMPUR: PLB Engineering Bhd’s unit, PLB Land Sdn Bhd, has agreed to buy two plots of land in Ayer Itam, Penang, from individual vendors for RM6.5 milion last Friday.

The plots, measuring 4,563 sq m and 5,178 sq m respectively, will be used for future development, the company said in a filing to Bursa Malaysia yesterday.

By Business Times

I-Berhad inks pact with Everbright Intl

I-Berhad today entered into a strategic alliance with China-based, Everbright International China, to co-develop 12.14 hectares (30 acres) of land in i-City via a joint venture.

Everbright will have a 70 per cent shareholding in the venture. I-Berhad, in a statement here today, said it would hold the balance 30 per cent stake.

Apart from financing the construction, Everbright will also lead a consortium of Chinese companies to set up operations in i-City, Shah Alam.

The development will be undertaken in two phases involving 5.66 hectares (14 acres) for the initial phase and the balance 6.47 hectares (16 acres) in the
subsequent phase.

The first phase of the development is for a commercial hub with a gross development value of RM1.5 billion comprising a 92,903 sq m (one million sq ft) shopping mall and 185,206 sq m (two million sq ft) of mixed residential, MSC offices and educational institute. Work on the project is expected to begin by mid-2012.

By Bernama

Seri Alam in JV with S’pore company to build international school in Iskandar

PETALING JAYA: United Malayan Land Bhd's (UM Land) fully-owned subsidiary, Seri Alam Properties Sdn Bhd, has formed a joint-venture company with Singaporean educational management company Raffles Campus Pte Ltd called Raffles Campus (Seri Alam) Sdn Bhd (RCSA) to develop an international school in Bandar Seri Alam, within Iskandar Malaysia in Johor.

The campus will spread over 20 acres next to the Universiti Teknologi Mara campus in Bandar Seri Alam.

Seri Alam Properties entered into a sales and purchase agreement on Sunday with RCSA for the proposed acquisition of a freehold land measuring 19.71 acres for RM10.83mil.

At least 230,000 sq ft will be allocated for the built-up area, excluding staff residences and students' hostel.

The school, Excelsior International School, will feature state-of-the-art facilities catering to up to 2,000 students.

An international curriculum will be offered for children from kindergarten up to high school. A management team from Raffles Campus will manage the school.

The design of the campus has been completed. Construction will begin in January 2012 and is expected to be completed in June 2013.

Raffles Campus is a wholly-owned subsidiary of Strategic Technology for Education and Academic Management Pte Ltd, which is 70% owned by Strategic Foundation Ltd (a non-profit organisation). The school will be its first in Malaysia and will commence admission assessments and enrolments in early 2013.

From this project, RCSA hopes to add prestige to the Bandar Seri Alam township and enhance capital values by providing quality and wholesome living for its residents.

UM Land's share trading was halted from 9am to 10am yesterday in view of the company's announcement.

In a statement, Raffles Campus chairman and chief executive officer Ng Boon Yew said: “The school will take into consideration local requirements and, although the medium of instruction will be in English, all the students will be encouraged to learn their mother-tongue as either first or second language.”

By The Star

UDA to build affordable shoplots

ROMPIN: UDA Holdings Bhd will build affordable shoplots at 15 strategic locations with a RM30 million allocation provided by the government.

Its chairman Datuk Nur Jazlan Mohamed said among the locations identified for the "kedai desa" were Kuala Pahang, Kuala Rompin and Mentakab (Pahang); Changkat Jong and Pangkalan Alor (Perak); Muar and Ledang (Johor); Jasin (Malacca); Kuala Pilah (Negeri Sembilan) and Jeli (Kelantan).

He said each location will have between five and eight double-storey units depending on the cost involved and the demand in the areas.

He said the cost for each location would only be RM2 million on average as the sites would be provided by the local authorities.

Construction of each project will only take eight months and once completed, UDA will hand it to the respective local authorities.

The local authority will then let the shoplots to local entrepreneurs at reasonable rates, Nur Jazlan said at the signing of a memorandum of understanding in Rompin, Pahang, yesterday.

By Business Times

Ascott plans to double portfolio in Malaysia

KUALA LUMPUR: Singapore-based The Ascott Ltd, the world's largest international serviced residence owner-operator, plans to double its serviced apartment portfolio in Malaysia over the next five years.

Ascott regional general manager for Singapore and Malaysia, Tan Boon Khai said it aims to open one or two properties a year as it is bullish on the market.

"We see Malaysia as a very good market. Although there is economic recession in some countries, Malaysia is holding up," Tan told Business Times.

"There is a lot of foreign investments flowing into Malaysia. This alone will create demand for our properties. The more properties we have, there will be economies of scale," he said.

Ascott aims to own and manage serviced apartments in Sabah and Sarawak, Johor and Penang. It plans to build the properties from scratch, or buy over existing buildings, Tan said.

Currently, Ascott owns and manages Ascott Kuala Lumpur, Somerset Seri Bukit Ceylon and Somerset Ampang. It also manages Marc Service Suites and Tiffani by i-Zen for third parties.

The average occupancy for the five operating properties between January and October 2011 was 62 per cent.

Over the next five years, the group will manage Ascott Sentral Kuala Lumpur (owned by GSB Sentral Sdn Bhd, an associate of MRCB and Gapurna Group); Citadines Uplands Kuching; Citadines D'Pulze Cyberjaya; Somerset Puteri Harbour, (owned by Nusajaya Consolidated Sdn Bhd and a joint venture between United Malayan Land Bhd and UEM Land Bhd); and Somerset Uptown Damansara (owned by See Hoy Chan Sdn Bhd).

"If the owners are keen to sell their serviced apartments, we will consider exploring. The trend is building where people want to stay in serviced apartments during their travel. We will look at all angles to grow," Tan said.

It operates serviced apartments under three brands - Ascott, Citadines and Somerset.

The flagship Ascott-branded properties are premier serviced residences that offer residents discreet service in an exclusive environment.

Citadines serviced residences cater to independent travellers while Somerset serviced residences are designed for business executives who travel with their families.

The Ascott has about 22,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region.

By Business Times

SYF ready to enter property development business

Kuala Lumpur: Datuk Chee Hong Leong has a growing reputation in the market and he is putting it at stake by driving SYF Resources Bhd into the property development business.

In the meantime, he has also emerged as its second largest shareholder, owning slightly over 10 per cent of the company.
“I wouldn’t be here if I didn’t believe that the property business for now is the best model for SYF,” said Chee, who was recently appointed as an executive director.

Chee emerged as a force in the company at the same time as Datuk Chew Lak Seong and Datuk Eric Ong Kook Liong, the two men
behind privately held KIP Group, which is involved in the property business.

The two own just slightly more than 14 per cent of SYF. Chee is banking that by cleaning SYF’s balance sheet, he will be able to take the company to the next level. The spring cleaning of the
balance sheet has helped SYF to post a net profit of RM39.24 million in the first quarter ended October 31, 2011.

Now that the restructuring is done, SYF is hoping that the property development business will become the company’s second core business and help provide it with a stable income stream.
“We are also expecting our timber manufacturing business to post double-digit growth,” said Chee.

A double-digit growth should help the manufacturing business to rake in as much as RM200 million this year.

The margins, according to industry experts, could be as high as 10 per cent due to the flooding in Thailand.

Nevertheless, Chee, who has been involved in the property business for nearly half a decade, felt that it was the property business that would take SYF to the next level.

He added that in the initial stage, SYF would not be depleting its cash reserves, saying that the company would instead enter into joint ventures to help develop properties.

The rationale is that SYF wants to build up its brand name first before undertaking bigger jobs.

"With land ownership, you can't go wrong because as they say 'God don't make land any more'," said Chee, whose goal in the current financial year is to keep SYF as a single-digit Price-to-Earnings company.

By Business Times

Genting to invest RM100m in JPO expansion plan

JOHOR BARU: Genting Bhd plans to invest another RM100mil in the second phase of the expansion plan of the Johor Premium Outlets (JPO) in Kulaijaya, north of Johor Baru.

Genting chairman and Genting Plantations Bhd director and chief executive officer Tan Sri Lim Kok Thay had personally told Prime Minister Datuk Seri Najib Tun Razak on the group’s plan.

The expansion plan would see an additional 60 new outlets, bringing the total to 130 outlets from 70 presently, and a water theme park.

Genting’s total investment in the project is about RM1bil. Other components in the pipeline include a hotel with 2,000 rooms and hospitality facilities for meetings, incentives, conventions and exhibitions.

“The expansion plan will take place in the near future,” Najib said yesterday at the opening of the JPO, the 70th centre in the Premium Outlets portfolio and the world’s largest collection of upscale outlets centres.

He said the JPO, a project earmarked under the Economic Transformation Programme, would boost the economy via tourism and help transform the industry in Johor as well as the country.

StarBiz learnt that the expansion plan would probably take place either in 2014 or 2015 and Genting’s main focus now was to position JPO as the leading retail outlet in the region.

JPO is the only Premium Outlets centre in South-East Asia. There are 58 other Premium Outlets in the United States, one in Puerto Rico, one in Mexico, eight in Japan and two in South Korea.

Among the brands on the offing at the outlets are Armani, Burberry, Canali, Coach, Ermenegildo Zegna, Guess, Michael Kors, Ralph Lauren and Salvatore Ferragamo.

The Premium Outlets is a 50:50 joint venture between Genting Plantations and Premium Outlets, the outlet division of Simon Property Group Inc.

Meanwhile, Lim said JPO would benefit from the Genting group’s expertise in hospitality and marketing to promote the outlets to customers globally.

By The Star

Bandar Ainsdale project in Seremban to kick off affordable housing scheme

SIME Darby Property Bhd will be offering affordable housing in the coming years as a stategic component in their up-and-coming townships in line with market needs and to complement the government's affordable-housing scheme.


Wahab: (75% sales record) is a clear reflection that residential properties in prime areas are still very much in demand and we are optimistic.

In his first press statement since he took over as managing director, Datuk Abdul Wahab Maskan says they have already identified areas in their townships for PR1MA housing, also known as 1Malaysia Housing Programme. Their first township to kick off affordable housing will be Bandar Ainsdale in Seremban.

Wahab, who is also Sime Darby Bhd group chief operating officer, assumed the position at the property division from Tunku Datuk Badlishah Tunku Annuar in June. Wahab is also Sime Darby group chief operating officer.

There are several reasons why Sime's contribution to affordable housing will begin at Bandar Ainsdale. First, Bandar Ainsdale is a new 550-acre township that will be launched at the end of this year and it will be viable to begin social housing with a clean slate. Ainsdale will comprise residential and commercial segments. Over and above that, the focal point of that township will be its integrated public transportation component with a KTM station to be its public transportation terminal. This will add to Bandar Ainsdale's accessibility, which will be a much needed infrastructure in any affordable housing scheme.

Other areas that will subsequently offer affordable housing include Ara Damansara in Petaling Jaya near Subang Airport, Bandar Bukit Raja in Klang, Putra Heights in Subang Jaya, Kota Elmina in Sungai Buloh, Elmina West in Shah Alam and Lagong Mas in Rawang, Selangor.

Earlier, it was reported that the Economic Planning Unit (EPU) would focus on three projects comprising the first PR1MA scheme to be offered by the government in Presint 11, Putrajaya, Bandar Ainsdale in Seremban and Bandar Tun Razak in Cheras this year.

EPU deputy director-general Datuk Mat Noor Nawi said about 4,000 units will be offered in this first batch of PR1MA housing with the development in Presint 11 to provide 560 apartment units while the other two developments will consist of a mix of landed and high-rise and apartment units for the Bandar Ainsdale in Seremban and Bandar Tun Razak projects respectively.

Other than affordable housing, Sime also plans to launch more than RM2bil worth of properties from the third quarter of this year to the end of its 2012 financial year which closes at the end of June. Wahab says they are en route to achieving this target.

The division recently launched Isola, a 216-unit serviced condominium in Subang Jaya, Selangor which has a gross development value of more than RM210 mil, which was 75% sold on its first day itself.

“This is a clear reflection that residential properties in prime areas are still very much in demand and we are optimistic. The residential property segment is expected to remain positive this year, especially in the main areas of growth such as the Klang Valley and other urban centres. Similarly, shop houses will also remain attractive to buyers and investors, especially if they are located in high growth areas,” he says.

Launches targeted till the end of this year include link houses (about 271 units), shop offices (about 61 units), condominium/serviced apartments (about 966 units), bungalows (about 71 units) and commercial units (about 171 units) in Denai Alam, Nilai Impian and Bandar Bukit Raja.

To date, it has successfully launched Maple Terrace in Denai Alam, Avalon 1 and Avalon 11 in USJ Heights, Davina 111 and Iluna in Nilai Impian. These properties are worth more than RM320mil collectively, the statement says.

They will have seven launches for the first six months of next year, or 3,848 units of condominiums, industrial properties, mixed development and bungalows. Next year's launches include a mixed development with 35 units in Ara Damansara, 554 units of villas and condominiums in Putra Heights in Subang Jaya, 231 units of mixed development in Bandar Bukit Raja in Klang and about 90 units of industrial properties in Elmina East in Shah Alam. Other launches slated for next year include about 1,000 units of mixed development in Denai Alam, Shah Alam, 540 units of bungalows and condominium-cum-villas in Bukit Jelutong in Shah Alam and about 1,400 units of mixed development in Melawati in Ulu Kelang.

Subsequent to the success of Sime Darby Property's Oasis Square in Ara Damansara, where Sime Darby Property and Sime Darby Plantation's corporate head offices have been re-located to, the next commercial development in the Ara Damansara township will be Oasis Corporate Park. That mixed-commercial development will see its first 340 units of flexi-office suites with 620 sq ft of office space each, launched early next year.

The presence of these two corporate HQs will generate a sizeable retail market for the area. Together with Oasis Corporate Park, the company expects Ara Damansara to be a popular suburb in time to come.

“Development in Ara Damansara is about 85% completed. Residential properties in Ara Damansara have recorded an average price growth of about 100% in five years. This translates into a yearly average growth of 13.7% compounded.” (Source: Jones Lang Wootton research). Together with the 9.8 acres of Oasis Corporate Park development, that township will eventually have a mix of corporate offices, serviced suites, a hotel and a convention centre.

Upcoming developments in Ara Damansara include Senada Condo Villa, an 18-unit project with an estimated selling price of around RM3.8 million per unit with built-up of the units ranging from 7,080 to 7,500 sq ft, which is scheduled to be launched in the second quarter of next year. The other project is Community Square, a commercial hub and low rise centre that focuses on offering convenience to the Ara Damansara community. This community square is also anticipated to provide added value in terms of commercial value to the community.

By The Star

Polish the gems of KL

The festive season is just around the corner. Many of us have either planned our vacation and are most probably travelling at this very moment. Whichever destination we have in mind for our vacation, the consensus is travelling provides us an opportunity to revitalise ourselves, gain knowledge and broaden our experience.

For some of us, travelling is an avenue for reflection and inspiration. Seeing a new place and/or experiencing a new culture allows us to reflect on what we have and gives us the motivation to seek improvements.

Without a doubt, the experience and knowledge gained from my trips especially those abroad have inspired me with many ideas to improve myself, my family and the community. By simply comprehending the ordinary activities of the common people around the world, a new sphere of ideas becomes apparent.

Insignificant at first sight, a closer examination draws out the importance of the activities of the people albeit with different perspective from different people. For me, the significant realisation was that these activities were made possible due to the structure and growth of the city as well as the mindset of the people. These activities form part of the pivotal elements that make a city liveable, likeable and eventually, a world class city.

Going down memory lane, I remember seeing hundreds of people practising Tai Chi in one of the parks in Beijing. In other parts of the world, young executives are commonly seen reading the newspapers on their way to work via the Metro in Paris; children running freely around the playground in Sydney; students performing at a music festival in Hong Kong; families having fun at a carnival in London; and the list goes on.

One would enquire: “What is so special or significant about these ordinary activities that other people in different parts of the world do?”

Let's take the Tai Chi exercise in Beijing as an example. In my view, it reflects the health consciousness, community spirit, and the value of volunteerism practised by the society in Beijing. The group leader of the Tai Chi exercise conducts the exercises on a voluntarily basis. In return, he/she is joined by people of all ages who are interested in the exercise for health reason, community kinship or simply, as a form of relaxation. This creates a healthy society and a sense of belonging among the community, something of which we could promote in Malaysia.

My last article touched on the macro aspects of making Kuala Lumpur a world class city. Now, let's cover the social and cultural aspects which form the other integral parts that would contribute to this vision.

The social and cultural characteristics basically address the “software” aspects of the society. The elements that form this “software development” include peace, prosperity, history, culture, education, entertainment and the rich diversity of the society. With these elements in place, bountiful benefits can be achieved.

Let's reflect on the examples that I have shared earlier. What allows the children to run freely in a playground or why do young executives have the luxury to read the newspaper on their way to work or how does one get students to perform at a music festival or run a carnival for families to enjoy?

There is probably more than one answer to all of the questions. One thing that is common is the fact that all these activities are made possible when the city is allowed to flourish, free of crime and has world class facilities for people.

We can achieve the same by changing our mindset from “wait-an- see” to “let's explore”. We can work together to prevent crime and encourage the use of public amenities such as parks with care through education and public awareness. An improved public transportation system to ease traffic congestion and enhance workforce efficiency is definitely a must.

In terms of human resources development, a well thought and long-term plan is required to retain local talent and attract professionals from abroad. Educational institutions must provide a high level of quality education and encourage students to have a balance exposure to the arts and sciences in order to cultivate greater creativity which would benefit the society as a whole.

To generate a greater sense of belonging and to promote community living, city stakeholders can organise more social events and entertainment events, such as cultural performances, open air concerts, carnivals and sporting events. Significant events will bring in the tourists and can eventually become attractions for the city.

Living in a multi-racial and multi-cultural society, we get to enjoy the differences that come with this diversity and uniqueness. For example, we are pampered with a seemingly endless variety of food and eating out is a real gastronomic treat. Imagine having a simple meal and drink of your choice at a mamak stall and paying less than RM10 for the whole dining experience. Malaysia, especially KL, is a gourmet centre for the locals and tourists alike. I believe every Malaysian would attest to that and agree that food is the common element that brings people together.

We should therefore put emphasis on sustaining and enhancing this social and cultural uniqueness to our benefit. Each of us plays a part in contributing to the transformation of KL and of the country. Let us start by equipping ourselves with good practices so that KL can earn the recognition as a world class city and place Malaysia more prominently on the world map.

The diversity of our food, culture and heritage is the hidden gems ready to be uncovered and once discovered and polished, they will make KL and Malaysia shine and reveal their true beauty.

Datuk Alan Tong is the group chairman of Bukit Kiara Properties, he was the FIABCI World President in 2005-2006 and was recently named Property Man of The Year 2010 by FIABCI Malaysia.

By The Star (by Datuk Alan Tong)

Singapore move likely to benefit Iskandar

JOHOR BARU: Property developers in Iskandar Malaysia are expected to benefit from the new ruling introduced by Singapore for foreigners buying private properties in the republic.

The move was introduced on Wednesday to cool private residential property prices in the island state which are on the uptrend despite a slowing economy.

Johor Real Estate and Housing Developers Association branch chairman Simon Heng said foreigners buying properties in Singapore for investment might look elsewhere in the region.

“With Iskandar Malaysia progressing well since its inception five years ago, these buyers (foreigners and Singaporeans) are most probably looking at Johor Baru,’’ he told StarBizWeek.

Heng said prices of residential properties in Johor were much lower than those in Singapore and Johor’s close proximity with the republic was an added advantage compared with places like Kuala Lumpur and Penang.

He said developers with projects in Nusajaya would benefit the most as there were no restrictions on property ownership by foreigners, including Singaporeans.

On the other hand, areas outside Nusajaya in Iskandar did not enjoy the privilege and in places where the 30% quota was imposed on developers selling residential properties worth RM500,000 and above, Heng said.

Another strong selling point for Nusajaya was its location, not far from the second link crossing, which made it a favourite place for Singaporeans living in Johor Baru but working in the island, he added.

UEM Land Holdings Bhd is the master developer of the 9,308ha Nusajaya which is the key driver of Iskandar and one of the five flagship development zones in the country’s first economic region.

Nusajaya comprises seven signature developments – Kota Iskandar (Johor State New Administrative Centre), Southern Industrial and Logistics Clusters, Puteri Harbour Waterfront Development, EduCity, Medical City, International Destination Resort and Residential Developments.

Other flagship development zones in Iskandar are the Johor Baru City Centre, Eastern Gate Development Zone, Western Gate Development Zone and Kulai-Senai.

“Rehda members are hoping that the special treatment accorded to Nusajaya would be extended to other development zones in Iskander as well,’’ he said.

Meanwhile, Daiman Development Bhd general manager Siah Chin Leong said it was still too early to see the impact on the Johor Baru property market following the new ruling.

He said majority of foreigners buying private residential properties in Singapore were investors and high net income individuals who already owned properties in other major cities in the world.

Siah said overseas investors were particularly the affluent Chinese from the mainland, Indonesian Chinese, Indian nationals and, to some extent, Malaysians, were flocking to buy properties in Singapore.

Berinda Group sales manager Lim Sung Heng expected that there would be a spill-over effect from the ruling on the Johor Baru property market probably within the next few months.

He said the state government and other relevant agencies must make more effort to make Iskander a preferred destination for property buyers not only Singaporeans but also other nationalities.

By The Star

Foreigners and PRs have to pay more stamp duties in Singapore

On Wednesday, The Singapore government imposed a new 10% stamp duty on foreigners and companies buying private residential property in the city state. The move, its fifth in the past two years, is the first in 15 years targeted at foreign buyers.

The stamp duty, effective from Dec 8, is in addition to the existing buyers' stamp duty, which is 1% for the first S$180,000 of the purchase price, 2% for the next S$180,000 and 3% for the rest, The Straits Times reported.

Permanent residents who already own a property, and who are buying a second or subsequent property, will now have to pay an extra stamp duty of 3%. Singaporeans who already own two properties and are buying a third or subsequent property will also pay extra stamp duty of 3%.

For a S$1 mil property, a foreigner will have to pay an additional buyer's stamp duty of S$100,000 on top of the current S$24,600.

The move underscores two important issues.

The first, that inspite of the “open and free” market system there, the government is ready to swallow the bitter pill of plying measures that may well add to an already weakening Singapore economy, if those measures were to be the salvation of the country's greater economy in the long-term.

The second is its timing. Why, at this juncture when European leaders are meeting this week in an attempt to solve the eurozone crisis?

Thus far, foreigners and Permanent Residents, many of whom are Malaysians, have enjoyed a fairly “open and free market” when it comes to property ownership. Until Wednesday, they faced only certain restrictions in buying landed homes.

Notwithstanding this open, free and transparent system, Singapore has a two-tiered property market. There is the HDB (or Housing Development Board) and the private residential market. HDB housing makes up the bulk of the market, at about 80%. Private residential market accounts for only 20%.

The fact that the government is concerned about prices shooting further in this 20% portion underscores the primacy of the property sector in the country's greater economy.

It also underscores its vast exposure in terms of value, that this 20% commands in Singapore's property market. This private residential portion is primarily owned by foreigners where prices are many times that of the HBD portion.

In the event the eurozone talks hit a snag due to disagreements among the eurozone members this weekend, and because of Singapore's high foreign exposure, any price fall in that 20% portion will also affect the HBD portion.

In any market where there is a large foreign exposure, there will be a greater degree of volatility because foreign buyers will be the first to leave that market. They will not be staying around to weather the storm. It is the PR holders and citizens who will be staying put.

Foreign buyers accounted for 19% of all private residential property purchases in the second half of this year, up from 7% in the first half of 2009. These figures exclude purchases by PRs, The Straits Times reported.

Sales of new private homes hit a record 16,292 last year. This year looks to be another banner year with 13,688 units sold in the first 10 months, Straits Times reported. That imposition of the stamp duty is sending a message to investors and speculators that the government is seriously concerned about the formation of any bubbles in that 20% private residential portion.

Let us return to Malaysia. For years, property consultants and developers have been trying hard to sell high-end properties, both landed and high-rise to foreigners. They are at a loss why despite comparatively low prices in Malaysia, our properties have not enjoyed the same attention as those in Singapore, Hong Kong, China, Vietnam and other southeast Asian countries.

The fact is, low prices alone will not attract foreign buyers. While property ownership seems easy enough foreigners can buy residentials exceeding RM500,000 there are many other factors that play an important role. Notwithstanding all these, do we want a large foreign exposure? There are mixed views about this among property consultants, developers and government.

It is a fact that the Malaysian property sector will not have the global intricacies tied up with being an international financial hub, so we need not be too worried about that. But we do need to mull over our own property sector as a result of Singapore's move and consider how we can fine-tune our property sector less the threat of eurozone woes come knocking on our doors. We do have a lot of high-end properties waiting to be sold and authorities who approve such projects need to consider today's global climate.

Assistant news editor Thean Lee Cheng has two questions: Do we want a large foreign exposure? And if not, what are we to do with the thousands of units of high-end housing which are unsold today?

By The Star