MAKE BETTER DECISIONS

FRIDAY NOVEMBER 6, 2015 ISSUE 2041/2015

A PULLOUT EVERY FRIDAY WITH

Read this copy online @ theedgeproperty.com MAKE BETTER DECISIONS PP 9974/08/2013 (032820)

ep11 LEGAL ep12 FEATURE ep14 FEATURE What you need to know 5 things you shouldn’t 7 inspiring ideas for about Real Property do when buying your that empty space under Gains Tax fi rst home the stairs

Promising outlook for Shah Alam, capital of , will have seven stations along the new - LRT 3 line which is due in 2020. Coupled with the proposed Damansara-Shah Alam Highway, it will give a much needed boost to the property market there. See story on pages ep8 & 9.

HANNAH RAFEE/THE EDGE PROPERTY FRIDAY NOVEMBER 6, 2015 • THEEDGE FINANCIAL DAILY EP2 PROPERTY | NEWS

ON NEWS ROUNDUP Go to theedgeproperty.com for more listings

Titijaya Land and Amona Bhd to undertake a proposed res- said on Oct 31 that the group’s fo- site of the Royal Adelaide Hospital at www.theedgeproperty.com Development to develop idential development with an esti- cus will be and Kota is a key part of the wider Riverbank government land in Bukit mated gross development value of Kinabalu. It is currently in talks with Precinct, which has seen A$4.7 bil- Bintang RM257 million. landowners in Setapak and Petaling lion worth of investments. In a fi ling with Bursa Jaya. In the Klang Valley, it is cur- If S P Setia wins the project, it will on Nov 4, the construction compa- rently developing Lido Residency be its third in Australia. Th e Malay- ny said its wholly owned subsidiary at Jalan Loke Yew, Season Garden sian property developer fi rst cut its Ahmad Zaki Sdn Bhd has received in Wangsa Maju, and KL Traders teeth with a venture in Melbourne a letter of award (LoA) from Kwasa Square in Kuala Lumpur. known as Fulton Lane, featuring a Land, in relation to the appointment. A$480 million luxury apartment de- According to the fi ling, the pro- S P Setia shortlisted to bid velopment. Its second is the Parque Research head: posed development will sit on a for redevelopment of Royal apartment project in Melbourne. Property prices 3.91-acre land parcel in the Kwa- Adelaide Hospital site won’t nose dive Titijaya Land Bhd is partnering with sa Damansara Township, and will United Malayan Land to Amona Development Sdn Bhd to entail the building of 188 high-rise launch Johor’s fi rst halal develop a 2.7-acre plot of govern- residential units. biotech park ment-owned land in Bukit Bintang, United Malayan Land Bhd (UM- Kuala Lumpur. Cheras South to get livelier Land) will launch the fi rst integrated Titijaya and Amona have signed with Cheras Traders Square halal biotech park in Johor, with an a shareholders agreement to form a estimated GDV of RM1.5 billion, next joint-venture company, Metrogale month. It will target local small and Development Sdn Bhd, to under- S P Setia Bhd, which is in a joint medium enterprises involved in the take the development. venture with Investec Australia Ltd biotech sector as tenants. In exchange for the proposed de- (IAL), has been shortlisted to bid for UMLand subsidiary, Tentu Teguh Property velopment, the JV consortium has a contract to transform the A$500 Sdn Bhd, is undertaking this project. developers proposed to build school facilities million (RM1.5 billion) old Royal Its head, Mohd Noor Abd Salam, in the Kuala Lumpur and Greater Adelaide Hospital site into a more said on Nov 4 that UMLand has also and their take Klang Valley areas, the companies upscale area, according to Th e Aus- applied for the halal park to be HAL- on the Johor said in a press release on Oct 30 . SCP Group is set to launch Phase 2 tralian newspaper on Nov 4. MAS-certifi ed by Halal Industry De- property “This new JV project is part of of Cheras Traders Square in Cheras Th e daily reported that the S P velopment Corp. the group’s land banking strategy, South, Kuala Lumpur, next year. Setia-IAL JV is one of four shortlisted To be called Johor Biotech Park, market which increases our presence in KL Cheras Traders Square sits on a 30- bidders in the race for the mixed- the halal biotech park will be devel- city. We hope that our support of the acre leasehold land parcel next to use project, along with construc- oped together with Johor Biotechnol- government in developing school Aeon Cheras Selatan and Mitraland tion giant John Holland with par- ogy & Biodiversity Corp. Th e park is facilities will improve support in- Group’s C180 development. The ent group China Communications located in Felda Cahaya Baru, some frastructure for education and move RM600-million Phase 1 of Cheras Construction Co Ltd in partnership 15 minutes from Johor Port in Pasir Malaysia forward in achieving its Traders Square, which was launched with Adelaide-based Commercial Gudang. goal of being a developed nation.” in September, occupies 20 acres and & General, the listed Lend Lease It will be developed over the next said Titijaya managing director, Tan houses 196 units of 2-storey show- Group, and tycoon Lang Walker’s seven years, with the fi rst phase to Sri Datuk Lim Soon Peng. room shop offi ces. property company. be completed in the first quarter The Edge Communications Sdn Bhd The 10-acre Phase 2 will be a South Australian Deputy Premier of 2017, said Mohd Noor. Th e fi rst (266980-X) Kwasa Land appoints Ahmad mixed-use development comprising John Rau was reported as saying that phase of the project, which involves Level 3, Menara KLK, No 1 Jalan PJU 7/6, Zaki as RM257 mil project’s , 47810 , shops, a multi-level parking podium the next step was a request for pro- a construction cost of about RM80 Selangor, Malaysia development partner and serviced apartments with an posals from the shortlisted develop- million, consists of 89 units of dou- Ahmad Zaki Resources Bhd (AZRB) estimated total gross development ers. Th e developers are to come up ble-storey factories, shophouses, has been appointed as the develop- value (GDV) of RM1 billion . with schemes to transform the ex- a dormitory for up to 600 workers Publisher and Group CEO Ho Kay Tat ment partner of Kwasa Land Sdn Executive director Calvin Low isting 275,000 sq m of buildings. Th e and an international Islamic school.

Editorial For News Tips/Press Releases Tel: 03-7721 8219 Fax: 03-7721 8038 Email: [email protected] If you have any real estate-related events, email us at [email protected]. Events listed here will also appear on theedgeproperty.com. Senior Managing Editor Azam Aris LAUNCHES & EVENTS Contributing Editor Sharon Kam Editor Rosalynn Poh Deputy Editors E Jacqui Chan, Launch of London fi nancing of up to 80%. Meanwhile, Organised by FIABCI Asia Pacifi c, this The launch carnival will feature Wong King Wai (Zone 2) and Melbourne Meridian is the latest luxury will feature projects by Malaysia’s stand-up comedian Harith Iskandar, Assistant Editor Lam Jian Wyn Senior Writer Racheal Lee Residences in Malaysia apartment in St Kilda, which is top developers, including S P Setia a dance performance by Wakaka Writers Chai Yee Hoong, walking distance from Fitzroy and Bhd, Eco World Development Crew, and a song performance by Rachel Chew, Hannah Rafee, Carlisle Streets and Albert Park Group Bhd, Bandar Utama Talitha Tan as well Genji Buskers, Tan Ai Leng, Natalie Khoo, Ewe Shufei in Melbourne. Prices of Meridian Development Sdn Bhd, Mah Sing food trucks and games. Art Director Sharon Khoh start at A$455,000 (RM1.39 million), Group Bhd, Sime Darby Property, Design Team Cheryl Loh, with fi nancing of up to 80%. UEM Sunrise Bhd, PJD Group and Show Unit Launch and Valerie Chin, Aaron Boudville, Upgrades of up to A$16,000 are Titijaya Land. There will also be Luxury Tea Session at Aminullah Abdul Karim, available, for this weekend only. free property talks by industry Sunway Property Galleries Yong Yik Sheng, Tun Mohd Zafi an Mohd Za’abah, Noorain Duasa experts from Friday to Sunday. Date: Nov 7 and 8 (Sat and Sun) IOI Property showcases Sierra 6 Venue: Sunway Eastwood Corporate Date: Nov 13 to 15 (next Fri to Sun) Launch carnival at South and Sunway Managing Director Au Foong Yee Venue: IOI City Mall, Putrajaya Serene Heights Rymba Hills, Deputy Managing Director Lim Shiew Yuin Contact: (03) 8944 9999/ Time: 10am to 5pm (Sunway (019) 674 1816 (Nicholas) Eastwood); 10am to 6pm Advertising & Marketing Date: Nov 7 and 8 (Sat and Sun) IOI Properties Group Bhd introduces (Sunway Rymba Hills) To advertise contact Venue: Straits Ballroom, The its latest development, Sierra 6, part Contact: (017) 964 0688 for Sunway GL: (03) 7721 8000 Fax: (03) 7721 8288 Westin Kuala Lumpur; Mersawa of the 16 Sierra township in Puchong Eastwood and (019) 666 9588 for Chief Marketing Offi cer & Meranti Rooms, Eastin Hotel, South. The three-storey superlink Sunway Rymba Hills or check out Sharon Teh (012) 313 9056 Petaling Jaya, Selangor homes have a built-up area of 3,526 Sunway Property Facebook page. General Manager, Digital Media Time: 10am to 7pm sq ft, and come with a home alarm Enjoy your weekend at the serene Kingston Low (012) 278 5540 Senior Sales Managers Contact: (016) 228 9150/ system, solar hot water system and a Date: Nov 7 (Sat) surrounding of greenery at two of Geetha Perumal (016) 250 8640 (016) 228 8691 digital lockset for the main entrance. Venue: Serene Heights Sales Sunway Property’s developments. Fong Lai Kuan (012) 386 2831 Cornerstone International Properties The group is off ering investors a Gallery, Persiaran Serene, Serene Sunway Eastwood Puchong South Peter Hoe (019) 221 5351 is organising the Malaysian launch chance to purchase the property Heights, , Selangor will be launching a new 2-Storey Gregory Thu (012) 376 0614 Creative Marketing of Ropemakers Wharf in London under a deferred payment scheme. Time: 10am to 5pm Show Unit. Visitors can check Chris Wong (016) 687 6577 and Meridian in Melbourne. Located Contact: (03) 8873 1603/ out the premium semi-detached Head of Marketing Support & Ad Traffi c just two tube stops away from the Premium Property Showcase (017) 277 0791 home designed for green living Lorraine Chan (03) 7721 8001 city centre, Ropemakers Wharf is Date: Nov 5 to 8 (Thurs to Sun) UEM Sunrise Bhd is introducing while enjoying light refreshments. Email: [email protected] the latest boutique luxury residence Venue: High Street, New Wing, 1 Begonia, the second parcel in the Meanwhile at Sunway Rymba in London, with waterfront views Utama Shopping Centre, Bandar fi rst phase of Serene Heights. The Hills, enjoy free fi nest luxury tea The Edge Property is published and of the Limehouse Marina. Prices Utama, Petaling Jaya, Selangor double-storey terraced houses session set amid a 6.5-acre private distributed with The Edge Financial of Ropemakers Wharf start from Time: 10am to 10pm have a built-up area of 2,204 sq ft forest and resort-like enclave at Daily every Friday. For more property data, listings and news, £459,000 (RM3.03 million), with Contact: (03) 6203 5090 with prices starting at RM636,800. Kota Damansara, Petaling Jaya. go to theedgeproperty.com.

FRIDAY NOVEMBER 6, 2015 • THEEDGE FINANCIAL DAILY EP4 PROPERTY | NEWS

CIDB: Sustainable construction a Th e trouble with game changer aff ordable housing supply for industry BY CHAI YEE HOONG

KUALA LUMPUR (Nov 5): Th e country Private sector can’t compete on cost with government schemes, says consultant has identifi ed “sustainable construc- tion” as the game changer for the con- struction industry under the Eleventh BY NATALIE KHOO National Real Estate Convention, Sim said. to provide aff ordable houses,” he said. Malaysia Plan 2016-2020 (11MP), said Th e convention’s theme is, “Homes for On the high rate of loan application rejec- Construction Industry Development PETALING JAYA: Th e private sector is un- Generations: Redefining Development tions, HASB Consultants Sdn Bhd chartered Board (CIDB) Malaysia chief executive able to provide aff ordable homes at prices Trends”. valuation surveyor, Victor Huang Hua, said Datuk Dr Judin Abdul Karim at the Zof- on par with Perbadanan PR1MA Malay- On the developer interest bearing scheme that a slight easing of loan approval criteria nass Programme Symposium held at sia (PR1MA), Rumah Selangorku or other (DIBS), RISM vice president Tunku Fauzi would be helpful to fi rst-time homebuyers. Harvard University in the US recently. government-backed affordable housing Malek said it should be implemented only “Every bank has its own standards and “Our ultimate goal is to ensure that schemes as their land cost and construction in aid of fi rst-time homebuyers to prevent guidelines on loan approvals guided by the as Malaysia advances to become a truly cost alone may double the selling prices of property speculation. central bank, so not all loan applications developed nation, its construction in- these homes, said Knight Frank Malaysia “First-time homebuyers are genuine buy- in every bank will be rejected. Having said dustry must grow and embrace global executive director Allan Sim. ers; they are not coming into the market to that, if the central bank eases the approval standards for modern, effi cient and sus- He was speaking at a press conference speculate,” he said. Th e demand for aff orda- [criteria], it will defi nitely ease the burden of tainable practices,” he added. on the 25th National Real Estate Conven- ble homes outstrips supply by a few hundred fi rst-time homebuyers,” said Huang. He says the construction industry tion organised by the Royal Institution of times, added Fauzi, observing that the recent On costs, the convention will off er talks is a key economic driver for Malaysia, Surveyors Malaysia (RISM) to be held on overwhelming public response to aff ordable on how innovative construction methods and from 2011 to 2014, a total of 29,435 Nov 12 at One City, . homes in Bukit Bintang and Taman Tun Dr can lead to cost savings, such as with the construction projects valued at RM470 “While the government off ers PR1MA Ismail bore this out. Industrialised Building System (IBS), said billion were awarded. [homes] in the price range of RM300 psf (per Commenting on the property outlook next Iskandar Regional Development Authority “Th is makes it imperative for us to square foot), private developers are only able year, Fauzi said that now is a good time as senior vice president of strategic commu- ensure that environmental sustainabil- to off er prices ranging from RM500-700 psf any to make a purchase if you can aff ord it. nications, Khaidzir A. Rasip. ity is included as part of our strategy to after construction cost and land cost [are Th e concern now is that the market is not “We have the expertise in Malaysia to balance economic growth with environ- taken into consideration],” he noted. meeting the needs of the younger genera- carry out IBS. The key point is to have a mental sustainability… Th e Construction Among other topics, RISM will be ad- tion, especially new graduates, he added. larger volume of home production so that Industry Transformation Programme dressing how to reduce development cost “Demand is always more than supply the benefi ts of IBS outweigh the cost. Th at (CITP), which was launched as part of in order to reduce house prices at the 25th and the government is always catching up is what is holding back developers mostly.” the [11MP], sets a clear goal for us to drive Malaysia’s sustainable construc- tion as a model for the emerging world. “Th is is important as it will funda- mentally shift the way our people regard EPF invests RM250 mil in industrial the importance of conserving our envi- ronment while boosting socio-econom- ic development. At the same time, we development fund need to consider increasing construc- tion projects’ resilience against climate change and natural disaster,” he added. BY HANNAH RAFEE Th e fi ve-year CITP was launched by Prime Minister Datuk Seri Najib Abdul PETALING JAYA: Th e Employees Provident Razak in September and focuses on Fund (EPF) has invested RM250 million into quality, safety and professionalism; en- the AREA Industrial Development Fund vironmental sustainability; productivity; (AIDF-1), for a 40% share, said EPF CEO and internationalisation. Datuk Shahril Ridza Ridzuan at the launch Judin said one of its key strategies of the fund yesterday. is to ensure greater industry adoption Th e launch was offi ciated by Datuk Lee of sustainable practices by focusing on Chee Leong, deputy minister of international high-impact public projects, which sets trade and industry. an example for the industry to follow. Th e fund, Malaysia’s fi rst industrial devel- CIDB is currently working closely on key opment fund, is initiated by private equity public projects such as the River of Life in fi rm, AREA Management Sdn Bhd. KL, the Mass Rapid Transit, High Speed Rail Th e fund aims to deliver Grade A indus- and Pan Borneo Highway construction. trial developments and assets, in an eff ort “With better compliance, we will also to generate foreign direct investment in the ensure that our infrastructure projects Malaysian market. become more resilient and sustainable “EPF’s commitment in AIDF-1 forms part From left: Rajesh Kumar (chief executive offi cer of Area Management Sdn Bhd), Datuk Shahril Ridza Ridzuan in the long run, in line with Malaysia’s of the retirement fund’s strategy to increase (chief executive offi cer of EPF), Datuk Lee Chee Leong (deputy minister of international trade and industry), vision to be a fully developed nation by its exposure in real assets, as part of its con- Gilles Chow (director of real estate, Canada Pension Plan Investment Board -CPPIB) and Datuk Stewart LaBrooy 2020,” said Judin. tinuing diversifi cation strategy. Logistics in- (chairman of Area Management Sdn Bhd). Th e board shared the CITP during the vesting is something that we do a lot of now two-day event organised by the Zofnass because it provides the right kind of returns chairman of Area Management, the fund logistics services to speed up deliveries in Programme for Sustainable Infrastructure for us. Th ese are the kind of assets that are will promote Malaysia as a preferred desti- Kuala Lumpur. at Harvard University’s Graduate School good for the long term,” he said. nation for multinational corporations to set “Currently, we are not able to share its of Design. AIDF-1 was fully subscribed in August up operations in Grade A industrial parks gross development value and our returns and Over 100 public sector offi cials, indus- 2015, and is expected be fully invested in in Malaysia. future projections, because we are yet to be try professionals and leading academics 36 months. “In fact, we have now moved past the fully invested,” added LaBrooy, who is also attended the symposium to share their Besides the EPF, other investors include conceptualisation stage with our maiden the chairman of Malaysian REIT Managers best practices as part of its aim to facilitate the Canada Pension Plan Investment Board investment in the development of an “Inner Association (MRMA) and the outgoing CEO the adoption of sustainable solutions for and Denmark’s Sparinvest Property Investors. City Logistics Centre”, a 17-acre, high-end of Axis REIT Managers Bhd, which handles infrastructure projects and systems. AREA Management Sdn Bhd declined to warehousing facility in Ampang, Selangor, the industrial logistics, offi ce-centric Axis Th e other Malaysian delegates who disclose the size of their stakes. with 1.6 million sq ft of net lettable area. Th is REIT fund. attended the symposium were CIDB Shahril said it was good that the fund is the largest distribution centre to be built Inner City Logistics Centre is expected board director and managing director of managed to bring in global investors. “It in Malaysia,” he said. to be completed in 2017. Kota Kelang Development Sdn Bhd Da- is a good way for us to market our coun- He added that the landmark new facil- Meanwhile, the fund seeks to invest in more tuk Ng Seing Leong, Ekovest Bhd man- try as an investment destination for glob- ity will meet increasing demand for inner industrial developments around Malaysia. aging director Datuk Lim Keng Cheng, al funds. The logistics industry will be a city distribution in Kuala Lumpur, includ- “We have a few projects planned in the Malaysian Resources Corp Bhd general key growth area for Malaysia and will be ing parcel distribution, e-commerce, self pipeline, although they are still under ne- manager (MRCB) Nor Izzati, MRCB pro- an area focus for us in the long term,” he storage, postal services, cold-chain sup- gotiation ... When we are fully invested, ject director Tan Sri Mohammad Salim, added. ply, supermarket supply and fast-moving we hope to set up the second series of this and IJM Construction Sdn Bhd senior According to Datuk Stewart LaBrooy, consumer goods. It be provide advanced fund,” he said. manager S Ramesh Subramaniam. FRIDAY NOVEMBER 6, 2015 • THEEDGE FINANCIAL DAILY NEWS | PROPERTY EP5 MRT Corp proposes solution for Ampang Park station

Ampang Park Shopping Centre is the country’s fi rst ever mall. Photo by The Design will avoid demolishing Ampang Park Shopping Centre Malaysian Insider

BY THEEDGEPROPERTY.COM

KUALA LUMPUR: Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) has proposed a new design for the Ampang Park MRT station that will not require its namesake, the country’s fi rst shopping centre, to be demolished. MRT Corp had presented the reviewed design during a ses- sion with the strata unit owners and management corporation on Nov 3. Th e new design entails, among other things, the site of the future station being moved slightly further from the mall’s lo- cation, an underground pedestrian pathway between the future station and the mall, a tunnel for the MRT line under the mall, and a partial closure of the basement carpark to accommodate construction work (see table for full list). However, the new design option still requires agreement be- tween MRT Corp and the strata unit owners in order to fulfi l the legal requirements for the MRT railway tunnel to be built under Ampang Park Shopping Centre. “Th ere will need to be 100% agreement from all the strata unit owners for the Mutual Agreement to be implemented. Th is is to enable the underground land, which is common proper- ty belonging to all strata unit owners, to be surrendered to the government so that the underground walkway and MRT tunnels can be built,” said MRT Corp in a statement yesterday. Th e agreement must be concluded and signed by the end of next January to allow the reviewed design to be used, and obvi- ate the demolition of the mall. MRT Corp has advised the owners to form a pro-tem com- mittee that can engage a lawyer to negotiate on their behalf. “Th e Ampang Park MRT Station is an important station for the MRT -Serdang-Putrajaya Line because it is the only station where commuters can transfer from this line to the LRT line,” it said.

Comparison between the original design and reviewed design for Ampang Park MRT station

ORIGINAL DESIGN REVIEWED DESIGN Station concept Full physical integration MRT station separated from with Ampang Park LRT Station, but connected LRT Station by a pedestrian linkway Station location Within Ampang Park Outside Ampang Park Shopping Complex Shopping Complex lot boundary lot boundary Walking distance to transfer between stations for commuters Approx 130m Approx 220m Land required for ○ Construction of MRT station ○ Construction of ○ Common concourse between underground linkway the MRT and LRT stations between the MRT ○ MRT tunnels and LRT stations ○ MRT tunnels Full demolition of Yes, in order to construct No, as only localised Ampang Park the MRT Station and the additions and alteration Shopping Complex common concourse works for the construction of the walkway and underpinning need to be done Lots affected All lots as full demolition Only lots located in areas of building on the ground floor and selected carpark bays in the basement will be affected Duration being affected 84 months Up to 36 months if mutual agreement (seven years) (three years) option considered Level of agreement from strata unit owners 100% 100% required for mutual agreement FRIDAY NOVEMBER 6, 2015 • THEEDGE FINANCIAL DAILY EP6 PROPERTY | NEWS

Latest phase of MesaHill in Nilai 60% taken up

BY RACHEL CHEW serviced apartments and soho units in three 22-storey towers above a fi ve-storey retail mall. KUALA LUMPUR: Th e latest phase of mixed- Th ere will also be a business hotel, bringing use development MesaHill serviced apart- MesaHill’s gross development value (GDV) ments in Nilai, Negeri Sembilan, is now 60% to RM1 billion. taken up since its launch in the second half According to Tan, Phase One which com- of this year. prises 527 soho units, sold out within a month “Response to our latest Phase 3 is excel- of its June 2013 launch, while Phase Two (544 lent considering current market sentiment. soho units) sold out within three months of its Th ere was a healthy turn-up of visitors [for the Feb 2014 launch. Both phases will be complet- launch] which we estimate to be in the hun- ed in 2016, and Phase Th ree will be handed dreds, with more in subsequent weeks,” said over to buyers in 2018. managing director and CEO of Green Target MesaHill is located close to educational Group, Datuk Tan Hong Lai. institutions such as Manipal International MesaHill comprises fi ve phases in total and University, Nilai International School and Nilai there are 754 serviced apartment units in Phase University, besides hypermarkets, shopping 3. It comprises 308 units of Type 3A1 (built-up malls and hospitals. area: 450 sq ft to 710 sq ft; price: RM237,000 Besides MesaHill, Green Target has an un- to RM325,000) and 446 units of Type 3A2 developed land bank of 600 acres in the Klang (built-up area: 420 sq ft to 1,085 sq ft; price: Valley and Pahang with an estimated GDV of RM269,000 to RM600,000). About 90% of Type RM2.3 billion. 3A1, launched in the fi rst half of this year, have Tan says Green Target will be previewing its been sold, while Type 3A2, launched on Oct next project in Raub, Pahang, in early 2016. It 16, was 30% taken up as of Oct 30. sits on 100 acres of land in Raub and is claimed In total, MesaHill will have 2,500 units of to be the biggest development there.

The Tank Stream Hotel Artist’s impression of is within the MesaHill mixed-use Sydney’s development central business district. Th e Tank Stream Hotel opens

IGB expands hospitality footprint with new Sydney hotel

BY RACHEL CHEW House, Martin Place, Queen Victoria Building, and Sydney Harbour Bridge. SYDNEY: IGB Corp Bhd expanded its hospi- “Sydney is a key destination in Australia tality operations to Australia with the offi cial and we believe that it will continue to enjoy opening of Th e Tank Stream Hotel in Sydney growth in business and tourism. With the on Nov 4 at an event offi ciated by Carol Gi- opening of Th e Tank Stream Hotel, we hope useppi, the CEO of Tourism Accommoda- to be a part of Sydney’s vibrant cityscape and First phase of Austin Duta in tion Australia. share with the world the rich culture and “We are excited to be opening Th e Tank history that the city has to off er,” Tan noted. Johor Bahru now 60% taken up Stream Hotel here in Sydney and believe Giuseppi cited Tourism Australia’s fore- that with our central location, personal ap- cast of a sustained 6% annual growth in in- proach, and unique all-in room experience, ternational visitors over the next 10 years, BY TAN AI LENG our guests will not only enjoy the conven- from 7.2 million to 10 million. ience and comforts of a hotel, but fi nd a “Sydney is a must-see destination and JOHOR BAHRU: IJM Land Bhd’s new township home away from home that they can come in fact, the most visited city in Australia… project, Austin Duta at Mount Austin here, saw back to time and time again whether they Th e Tank Stream Hotel is a very important the fi rst phase comprising 2-storey terraced are here on holiday or business,” said Tan addition to the vibrant city. It is providing houses achieving a take-up rate of about 60%. Boon Lee, the managing director of Tank a high-quality product in the heart of Syd- Th e fi rst phase is a 20-acre gated devel- Stream Holdings Pty Ltd — a member of ney,” said Giussepi. opment with a 1.07-acre park scheduled for the IGB group — at the event. Th e diversifi ed IGB — which has inter- completion in Dec 2017. Th e hotel is the latest in the group’s grow- ests in malls, offi ces and residential prop- IJM Land sales and marketing manager for ing chain of international hotels under the St erty development — also has hotels and Johor, Patrick Chin, told Th e Edge Property Giles brand, and aims to provide business resorts in major cities and tourist hotspots that the 183 units, priced from RM726,000, and leisure travellers with unparalleled ac- in Malaysia, the Philippines and Myanmar, were put up for sale in August. cess to Sydney’s central business district as that total 6,000 keys. The 5-bedroom, 4-bathroom units well as to some of its fi nest shopping, eating Currently, IGB’s hotel operations man- measure 24ft by 70ft, and have a built- and tourist destinations. age a varied selection of accommodations up area of 2,150 sq ft. A show house will Th e hotel has 280 twin, queen, and king ranging from three- to fi ve- star hotels which be ready for viewing by next April. rooms that come with complimentary in- comprise brands such as St Giles, Cititel, Located next to Seri Austin Hills, Austin Artist’s impression of the fi rst phase development of room movies, coff ee machine, beverages, Cititel Express and MiCasa. Duta is a 250-acre project that will be built in Austin Duta. high-speed Wi-Fi, and toiletries infused with The group continues to grow its hotel 12 phases. It has a gross development value Australian essential oils. portfolio, and has added several proper- of RM1.8 billion. buying interest return in the third quarter. Th e hotel is a 20 minutes’ drive from Syd- ties this year including Th e Wembley — a On the state of the property market, Chin Landed property developments in Johor Bahru ney airport, while nearby are other land- St Giles Premier Hotel in Penang; Cititel said, “Although the market experienced a down- which are aff ordable have attracted buyer inter- marks such as Darling Harbour, Sydney Opera Express Ipoh; and Cititel Express Penang. turn in the beginning of the year, we have seen est, and Austin Duta is one of them,” said Chin. FRIDAY NOVEMBER 6, 2015 • THEEDGE FINANCIAL DAILY FEATURE | PROPERTY EP7

01 High-rise attention on Phnom Penh

Condo boom in Cambodia’s capital driven by expat demand and a leap of faith

PHNOM PENH/SINGAPORE: High-rise 01. High-rise apartments are springing up across apartments are springing up across Cam- Cambodia’s capital, part of a property boom bodia’s capital, part of a property boom led led by expat demand, while developers are by expat demand, while developers are also also betting the country’s growing middle betting the country’s growing middle class class will shed a traditional distaste for ‘living will shed a traditional distaste for “living on on top of each other’. Photos by Reuters top of each other”. As once red-hot property markets like 02. A labourer sits on a truck near an apartment Singapore lose steam, frontier markets such under construction in central Phnom Penh. as Cambodia are gaining more attention from investors, and that is helping make the construction and real estate industries the Southeast Asian nation’s most dynamic engine of growth. Developers such as Singapore’s Oxley Holdings and Teho International are embark- ing on high-rise upmarket condominiums complete with swimming pools, gymnasi- ums and river views. Japan’s Creed Group as well as Taiwanese and South Korean fi rms have jumped into the market, while local developers are also building, albeit mostly low-rise apartments. A lack of condominiums in prime Phnom Penh areas for expats has led to high rent- al yields for investors. But some experts worry supply could outstrip demand in a few years unless the country's middle class moves away from a traditional preference for houses with land. 02 With an economy of only US$16.7 billion (RM71.5 billion), Cambodia could be very For the time being, the infl ux of foreign- It follows the 45-storey Th e Bridge, whose slow in shifting to high-rise living as its urban ers over the past few years as multinational residential units are almost fully sold - with middle class, while growing, remains small. companies open offi ces is feeding demand. Cambodians, Singaporeans and Taiwanese “Unless there is a strong take-up by local Th at helped the construction and real estate the top buyers. families, there could well be an oversupply,” industries contribute more to GDP than the Due to current limited stock, gross rent- said Marc Townsend, managing director for garment and footwear sector last year, ac- al yields for Phnom Penh's condominiums real estate services fi rm CBRE in Cambodia cording to the World Bank. located in prime areas are among the high- and Vietnam. Prime residential land prices in the capi- est in the region — 10% versus 4% to 6% in Property consultants note that most buy- tal jumped 14.1% in the fi rst half of this year, Bangkok and Singapore's 2% to 3%, CBRE ers of condominiums, even locals, are pur- the biggest rise among 13 Asian cities in a data shows. chasing them for investment purposes — Knight Frank research report. But while US$300,000 for a three-bedroom keen to rent them out and believing their CBRE estimates there are 48 condomin- apartment may be cheap enough to attract value will appreciate over the next few years. ium projects, both fi nished and under con- potential investors like businessman Ste- Th ey also estimate that foreigners account struction, in Phnom Penh, where total con- ven Chan, an attendee at an Oxley property for 60% to 70% of condominium sales in dominium stock is set to jump to 19,745 units launch event in Singapore, for many ordinary Cambodia, spurred on in part by the relaxing by the end of 2018, a 13-fold increase over Cambodians those sums are out of reach. of restrictions on foreign home ownership levels seen last year. “People like us don’t like to live in apart- in 2010, though some limitations remain Some of the most high-profi le projects are ments like this,” said 31-year old Hak Hab, in place. being built by Oxley and Cambodian devel- a cook who lives in the neighbourhood of “While most buyers are foreigners, the oper Worldbridge Land. Th ese include Th e a 16-storey condominium block but whose trend will change towards Cambodians. But Peak, a 55-storey mixed-use development wooden home borders a sewage canal. it may take 10 to 20 years,” said Kim Heang, with two residential towers and a Shangri-la “Th ese apartments are only for the very chief executive of Khmer Real Estate. hotel, which is due for completion in 2020. rich.” — Reuters FRIDAY NOVEMBER 6, 2015 • THEEDGE FINANCIAL DAILY FRI EP8 PROPERTY | COVER STORY

Laidback Shah Alam A nice place to live in but the non-landed residential property market here has yet to grab investors’ attention

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PHOTOS BY HANNAH RAFEE BY HANNAH RAFEE Anggerik Mall, TESCO, TESCO Extra and Giant. Shah Alam now encompasses many new hah Alam, capital of Selangor, is a and vibrant townships such as and tranquil, well-planned city carved but the focus of this article is out of former oil palm and rubber on the older north and central parts of the city. estates. It’s come a long way since Analysis by theedgeproperty.com of trans- being established in 1963, cultivat- actions in the 12 months to 3Q2014 in north ing its own distinctive character. and central Shah Alam (covering Kayangan SBack in the 1960s, the verdant township was Heights and to the north, and Sri poised to become the administrative centre Kampung Lombong and Kampung Jalan Ke- an of Selangor, and was made its capital in 1978. bun to the south), found that average prices Shah Alam has expanded vastly since then. of non-landed homes rose just 0.7% year-on- to R Its commercial and residential areas now year (y-o-y) to RM209 per square foot (psf) consist of 56 sections, divided into Shah Alam in 3Q2014. A g north, central and south. Th e older, northern Th ere are reasons for this realistic growth parts cover 18 sections, including Kampung trend, compared with other areas in the Klang is a Melayu Subang and U1, while central Shah Valley. par Alam has 25 sections (Sections 1 to 24) and “While demand for both landed and and is where most of its government agencies are non-landed properties in Shah Alam has abu located. In the south, there are 12 sections and grown steadily, properties here have not been Tesco, one the many shopping centres in Shah Alam. age newer townships, including Kota Kemuning subjected to heavy speculative forces,” says fair and . director of KGV International (M) Sdn Bhd, nor Shah Alam certainly has its quirks, with Anthony Chua. has an average price per unit of RM449,000. of RM606 psf, followed by Sri Acapella (RM477 un more than 18 roundabouts spread across “Based on the sales performances of newly Th e areas in Shah Alam north, such as in psf) and Indah Alam (RM375 psf). the central portion of the city, which off ers a launched residential development projects, Kayangan Heights and Alam Budiman, cater Most of the projects in Shah Alam north ert feeling of spaciousness and serenity not often condominiums and apartments seem to re- mainly to low-medium and medium income have shown some growth in the average price of n found in urban centres. Th is is where some of cord strong sales. Aff ordability is the driving earners, and hence attract mainly fi rst-time transacted. Ala its major landmarks are located, such as the force in the current market and personal homebuyers and young families, says director Baiduri apartment in Section 7 experi- ma Sultan Salahuddin Abdul Aziz Shah Mosque, upgrading of status and lifestyle has taken of Oriental Realty Sdn Bhd, Lee Jastin. “Th eir enced the highest growth, gaining 46% y-o-y cou the ’s Palace, Perpustakaan a back seat,” says director of LaurelCap Sdn choice of homes ranges between RM150,000 to reach RM294 psf in the 12 months to Sep- cin Tun Uda (the largest library in Selangor), Mu- Bhd, Stanley Toh. and RM450,000,” he adds. tember 2014. Th is medium-cost apartment is her zium Sultana Alam a SaShah adSaand Shah Alam a In ttheedgeproperty.com’s eedgep ope ty.co s aanal- a LaurelCap’s Toh concurs that new- one of few located within walking distance of Stadium. SeveralSeveral educationaleducational institu-institu- ysisysis ooff non-landednon-landed housinghousing ly married couples and young Universiti Teknologi MARA and is a popu- city tions, includinguding the ManaManagementgement transactionstransactions in tthehe 12 monthsmonths families prefer to call Shah lar location in the student rental market. a “B and Sciencece University,University, Universiti to 3Q2014, thethe highesthighest activitactivityy AlamA home. He adds that Based on theedgeproperty.com City Teknologi MaraMara andand KDU Universi-Universi- (30.7%)(30.7%) was in the RM100,001 there are also lecturers, research as of June 2015, the ask- dec ty College areare locatedlocated herehere as well.well. to RM200,00 price range.range. In ffact,act, government servants and ing rental yields in Shah Alam north ent North aandnd centracentrall ShShahah AAlamlam somesome 98% of transactions fell youngy graduates from the appeared moderate, with indicative also have a number of shoppingshopping belowbelow RM500,000. AboutAbout 48.6% administrative offi ces and yields ranging from 4.5% to 6.1% per “In centres, suchuch as SACC MaMall,ll, Pla-Pla- ofof ttransactionsransactions wwereere fforor bebelowlow educational institutions in annum. Resort-like condominium aff za Shah Alam,am, KompleksKompleks PKNS, RM200 psf.psf. It was alsoalso foundfound the area living in this part fo AEON Mall,l, OleOle OleOle SeksyenSeksyen 18, thatthat Sri AcapeAcapellalla in Section 13 rere-- of Shah Alam. m cordedcorded the highesthighest averageaverage price According to theedge- “While demand for both landed and up per unit duringduring tthehe perioperiodd at property.com, the most ex- non-landed properties in Shah Alam lif “Properties in Shah Alam RM550,000,RM550,000, which is about pensive address based on have grown steadily, properties here ba are likely to produce 23%23% higherhigher tthanhan thethe next-next- transactions in the 12 have not been subjected to heavy Sh healthy gains over the most costly proproject,ject, Seri HiHi-- months to 3Q2014 was speculative forces” - Chua. Th long term” - Ki. jauanjauan ConCondominium,dominium, in Menara U, with an av- Photo by Kenny Yap/ TamanTaman BukitBukit Saga, whichwhich erage transacted price The Edge Property FRIDAY NOVEMBER 6, 2015 • THEEDGE FINANCIAL DAILY COVER STORY | PROPERTY EP 9

SOURCE: THEEDGEPROPERTY.COM Chart 1:Shah Alam Top 5 most expensive condominiums/apartments by average transacted price as of 3Q2014

SOURCE: THEEDGEPROPERTY.COM

Resort-like Sri Acapella recorded the highest rental yield at 6.1% per annum. Chart 2: Top 5 condominiums/apartments in Shah Alam with highest indicative asking rental yield

head of business development of Oriental Realty (Shah Alam), believes that quiet Shah See property listings for this area Alam may suit some “peace-loving” families. on Market Watch EP10 Positive outlook Nonetheless, Shah Alam’s overall property market outlook remains positive, with mod- Oversupply of non-landed homes? erate growth in values. However, Toh suggests there may be an over- “Developments in Shah Alam are moving supply of high-rise properties in Shah Alam towards the north-west, where in the near future. “In general, there is an and the Guthrie Corridor are located. Val- oversupply of high-rise properties in Sel- AFEE ues of non-landed homes are expected to angor, rising 7.9% (1,889 units) from 2013. increase by 2% to 3% year on year, and values In Shah Alam, there are signs of oversupply of landed, terraced homes are to increase of this property type in the RM500,000 and between 4% and 5% year on year,” off ers Toh. above price segment, especially in the town Shah Alam’s potential will be given a centres,” says Toh. boost by the new Bandar Utama-Klang LRT According to theedgeproperty.com research, Sri Alam is one of the top 5 most expensive condominiums in Shah Alam, by average transacted price. 3 line due in 2020. Th e line is expected to some of the condominiums under construction ease congestion along the Federal Highway. in Shah Alam include Alam Sanjung by CB Land Shah Alam will have a total of seven stations: Sdn Bhd (a subsidiary of Crest Builder Hold- Sri Acappella recorded the highest yield, with including no alcohol-related premises and , i-City, UiTM, SIRIM, Section 14, ings Bhd), i-Residence by I-Bhd, K3 Residensi an indicative rental yield at 6.1% per annum. cinemas. Th e lack of entertainment venues in Persiaran Hishamuddin and Stadium. by K3 Synergy Holdings, Metia Residence by “Th e current average rent ranges from RM2 Shah Alam has since set the tone for this city “Besides, the federal government has also Prop Park (a subsidiary of Hua Yang), Prins Hill to RM3.50 psf per month,” says Chua. as a laid-back and sedate place to live. announced the construction of the Daman- Residences by NBL Development Sdn Bhd and Still, in an eff ort to add more vibrancy and sara-Shah Alam Highway (Dash), which is V-Residensi 2 by B&G Superb Property Sdn A great place to live? attract more tourists, there is one exception expected to improve the link between Da- Bhd. Th ese projects are expected to contribute Th ere are perks to living here. “Shah Alam to the rule: i-City, located in Section 7, Shah mansara and north Shah Alam. Th is will spur up to 2,300 units of new supply. is a well-planned city, and is less dense com- Alam. With an estimated gross development developments around and Batu Among the recent new property de- pared with areas like Subang Jaya, Sunway value of RM9 billion, the 72-acre urban devel- Arang,” says Chua. A proposed allocation of velopments in Shah Alam are Paramount and Puchong. On top of that, Shah Alam has opment consists of corporate, residential and RM4.2 billion for the implementation of Dash Corporation Bhd’s Utropolis, a multi-phase, abundant facilities and many government leisure hubs developed by I-Bhd. Th e project was announced in Budget 2016. mixed-use development in Glenmarie com- agencies are within easy reach. Th e city is also is estimated to be fully completed by 2020. “Furthermore, the development of i-City prising an indicative 1,422 apartment units fairly green,“ notes KGV’s Chua. Residents in Th e Leisure Park at i-City hosts a number of will prosper neighbouring Klang, thus creat- and 120,000 sq ft of retail space called Utrop- north and central Shah Alam also benefi t from attractions, such as Snow Walk – a 50,000 sq ft ing a satellite township, much like what has olis Marketplace. With an estimated gross 477 universities such as UiTM and MSU. ‘Arctic’ environment with 100 tons of ice sculp- happened with Petaling Jaya and Subang development value (GDV) of RM911 mil- Any fl ies in the ointment? “Most of the prop- tures. Th ere are also the city of Digital Lights, Jaya, where two districts have merged to lion, the 21.7-acre project is scheduled for rth erties here are leasehold with the exception Fun World -- which houses the country’s fi rst become one large entity,” adds Chua. completion in 2021. Its fi rst phase features ice of newer areas such as , Denai wax museum -- and Waterworld. i-City draws Ki agrees. “Shah Alam was never popular an impressive, 10-acre KDU University Col- Alam, Kota Kemuning and Kemuning Uta- thousands of visitors every weekend. among property investors, thus you would not lege campus opened in January this year. eri- ma. It is also evident that the Shah Alam local “One of the clear disadvantages of Shah expect property prices here to appreciate as Another upcoming development is ser- o-y council does not allow the establishment of Alam is the lack of entertainment venues. much as other markets in Kuala Lumpur, for viced apartment i-Suite in i-City, which has ep- cinemas, alcohol and entertainment outlets Also, the state capital lacks public transport instance. Still, Shah Alam property is likely a GDV of RM562 million and is expected to nt is here, with the exception of i-City,” says Toh. services such as the light rail transit to con- to produce healthy gains over the long term, be completed in 2017. e of About 15 years ago, Shah Alam was granted nect it with other parts of Shah Alam and the and factors such as the Bandar Utama-Klang Meanwhile, Toh advises investors to pu- city status, with the vision of it being Klang Valley,” says KGV’s Chua. LRT3 line and Dash will contribute to this consider apartments and condominiums ket. a “Bandaraya Melayu” (Malay Due to the leasehold status growth,” he says. Furthermore, “Shah below RM500,000 that are located near uni- om City). Th us, Shah Alam was of most parts of Shah Alam, Alam has one of the highest popula- versities and colleges, as they seem to fetch sk- declared a city with limited and the prohibition on tions in Selangor, therefore property good yields of up to 6%. “In fact, some are rth entertainment venues, certain forms of enter- demand and job opportunities will able to hit close to 6.9%. Hence, investors ive tainment venues, real constantly be available,” he adds. are encouraged to look for medium-cost per “In Shah Alam, estate agents say Shah apartments that are close to learning in- um aff ordability is the driving Alam may face certain stitutions as a guide. The medium-cost force in the current challenges in attracting apartments in Bandar Setia Alam also seem market and personal property investors. “Shah Alam caters mainly to low- to fetch good returns and capital appreci- upgrading of status and However, Steve Ki, medium and medium income earners, ation,” says Toh. lifestyle has taken a and hence attract mainly fi rst-time As for landed homes, there is still strong backseat” - Toh. Photo by homebuyers and young families” - demand due to the area’s relative aff ordabil- Shahrin Yahya/ Jastin. Photo by Haris Hassan/ ity compared with Petaling Jaya and Kuala The Edge Property The Edge Property Lumpur. Nonetheless, their prices are grad- ually becoming out of reach for middle-in- come earners. FRIDAY NOVEMBER 6, 2015 • THEEDGE FINANCIAL DAILY EP10 PROPERTY | MARKET WATCH Go to theedgeproperty.com for more listings

FOR SALE [in Shah Alam, Selangor] FOR RENT [in Shah Alam]

Menara U Tel: (017) 681 0319 Tenure: Freehold Sri Acapella Asking rent: RM900 Email: khairi@reapfi eld.com Asking price: RM140,000 Type: Condominium/ Built-up area: 622 sq ft Built-up area: 819 sq ft serviced residence Bedroom(s): 2 Seri Hijauan Bedroom(s): 3 Tenure: Leasehold Bathroom(s): 1 Type: Condominium/ Bathroom(s): 2 Asking rent: RM1,700 Description: Master bedroom serviced residence Description: Low-medium Built-up area: 745 sq ft for female tenants only. Tenure: Freehold cost fl at in Seksyen 25. Basic Bedroom(s): 1 Walking distance to MSU. Asking price: RM608,000 unit on second fl oor. Bathroom(s): 1 Agent/negotiator: Webber Chin of Built-up area: 1,062 sq ft Agent/negotiator: Christopher Description: Serviced apartment Total Realty Sdn Bhd (REN 08680) Bedroom(s): 4 Yong of Vivahomes with kitchen cabinets, built- Tel: (016) 663 2749 Type: Condominium/ Bathroom(s): 2 Realty (REN 09691) in wardrobes, TV cabinet, Email: [email protected] serviced residence Description: Quiet, cosy environment Tel: (017) 648 6518 air-con, water heater. Tenure: Leasehold with easy access to major highways Email: [email protected] Agent/negotiator: Khairi of Alam Idaman Asking price: RM357,000 (Elite, Kesas, LDP, NKVE). Close Reapfi eld Properties (Shah Type: Condominium/ Built-up area: 622 sq ft to Subang Airport, KLIA, USJ 16 Alam Idaman Alam) Sdn Bhd (REN 01555) serviced residence Bedroom(s): 2 and . Only 256 units. Tel: (017) 681 0319 Tenure: Freehold Bathroom(s): 1 Walking distance to proposed LRT Email: khairi@reapfi eld.com Asking rent: RM1,500 Description: Menara U is in station. Ground fl oor unit with Built-up area: 926 sq ft Seksyen 13, Shah Alam. This lanai, short walk to swimming pool. i-Residence @ i-City Shah Alam Bedroom(s): 3 partly furnished unit comes Renovated and in move-in condition. Type: Condominium/ Bathroom(s): 2 with one car park bay. Currently Comes with kitchen cabinet, built- serviced residence Description: Comes with tenanted and in good condition. in wardrobe and many extras . Tenure: Freehold kitchen cabinet, water heater, Amenities: shops, restaurants, Agent/negotiator: John Oh of CBD Asking rent: RM1,550 wardrobe, sofa, curtains schools; walking distance to Properties Sdn Bhd (REN 07002) Built-up area: 754 sq ft and two car park bays. Tesco Extra, short drive to Giant. Tel: (016) 971 5819 Type: Condominium/ Bedroom(s): 2 Agent/negotiator: Alex Tong of Accessibility: Jalan Email: [email protected] serviced residence Bathroom(s): 1 Everest Properties (REN 10172) Lama, Jalan Subang, Persiaran Tenure: Freehold Description: Serviced apartment Tel: (012) 363 3498 Kerjaya, Federal Highway, Elite Kristal Heights Asking price: RM350,000 with air-con, water heater, cooker Email: [email protected] Highway, NPE, Shah Alam Built-up area: 806 sq ft hood, hob, kitchen cabinets, balcony, Expressway, NKVE, Batu Tiga KTM Bedroom(s): 2 pool view. Facilities: 50m lap pool, Sri Alam Condominium Komuter Station (1.7km away). Bathroom(s): 2 gym, squash and badminton courts, Type: Condominium/ Agent/negotiator: Yee Chee Description: Partly furnished children’s pool, playground, 24- serviced residence Onn of Starcity Property unit, available now. hour security, 100MB broadband. Tenure: Leasehold Sdn Bhd (REN 15732) Agent/negotiator: Alex Tong of Amenities: schools, shopping Asking rent: RM2,000 Email: [email protected] Everest Property (REN 10172) malls, hospitals, banks, UiTM, Built-up area: 1,270 sq ft Tel: (018) 284 8888 Tel: (012) 363 3498 MSU, Unisel, Shah Alam Hospital, Bedroom(s): 2 Email: [email protected] Glenmarie and Saujana Golf Bathroom(s): 1 Menara U2 Condominium Type: Condominium/ and Country Club. Accessibility: Description: Fully furnished serviced residence Indah Alam Federal Highway, NKVE, Shapadu unit on a low fl oor. Condo is in Tenure: Leasehold Highway and future LRT line. a serene living environment. Asking price: RM428,000 Agent/negotiator: K K Located at KGSAAS Golf Club, Built-up area: 1,003 sq ft Wong of Vivahomes Realty Seksyen 13, close to PTPL Bedroom(s): 3 (Klang) (REN12978) College, UiTM and MSU. Easy Bathroom(s): 2 Tel: (017) 854 1008 access to NKVE and Federal Description: Located in Seksyen 7; Email: [email protected] Highway. Near , walking distance to mosque, UiTM, Cahaya Alam, Desa Alam and Unisel and a hospital. Accessibility: Seri Hijauan Setia Alam, Pusat Bandar Shah Type: Condominium/ Federal Highway, NKVE, Elite. Type: Condominium/ Alam and Bukit Raja Aeon. serviced residence Well-kept, ground fl oor unit, fully Type: Condominium/ serviced residence Agent/negotiator: Kelly Chong Tenure: Leasehold renovated with plaster ceiling, grilles, serviced residence Tenure: Freehold of Vivahomes Realty (REN 11113) Asking price: RM345,000 kitchen cabinet. Two car park bays. Tenure: Freehold Asking rent: RM1,700 Tel: (012) 736 9911 Built-up area: 450 sq ft Agent/negotiator: Kelly Chong Asking price: RM468,000 Built-up area: 1,033 sq ft Email: [email protected] Bedroom(s): 2 of Vivahomes Realty (REN11113) Built-up area: 1,149 sq ft Bedroom(s): 3 Bathroom(s): 1 Tel: (012) 736 9911 Bedroom(s): 3 Bathroom(s): 2 Kristal Heights Description: Menara U2 is near Email: [email protected] Bathroom(s): 2 Description: Located just next to Type: Condominium/ MSU and Jusco. Partly furnished Description: Comes with kitchen UEP Subang Jaya. Low-density serviced residence unit with plaster ceiling, air-con, Puri Aiyu cabinet, plaster ceiling, air-con. condominium with resort-like Tenure: Leasehold water heater. Ready tenants. Facilities: clubhouse, yoga environment. Easily accessible Asking rent: RM1,500 Agent/negotiator: Kee of space, sky garden, refl exology via LDP, NKVE and Kesas. Built-up area: 1,003 sq ft Denhill Realty (REN 10053) walkway. Amenities: Empire Fully furnished, high-fl oor unit Bedroom(s): 3 Tel: (017) 666 4403 Subang, Sunway Pyramid, Setia in a low-rise block. Fully air- Bathroom(s): 2 Email: kingsleykeeprop@ City Mall. Accessibility: Federal conditioned. Water bill is paid for! Description: Basic unit with gmail.com Highway, Kesas, NKVE; easy Facilities: Swimming pool, tennis grilles, lights and fans. Two car access to KLIA, , courts, playground, gym, barbecue park bays. Amenities: Walking Sri Acapella Klang and Setia Alam. Walking pit, function room, sauna, jacuzzi. distance to mosque; UiTM, distance to KTM Batu Tiga. Agent/negotiator: Hung Yew Unisel, upcoming new hospital. Type: Condominium/ Agent/negotiator: Emily Kho of Wong of CBD Properties (USJ) Accessible via Federal Highway, serviced residence Vivahones Realty (REN 06656) Sdn Bhd (REN 14102) NKVE, and Elite Highway. Tenure: Freehold Tel: (017) 904 0612 Tel: (010) 203 0255 Agent/negotiator: Kelly Chong Asking price: RM395,000 Email: [email protected] Email: [email protected] of Vivahomes Realty (REN11113) Built-up area: 916 sq ft Tel: (012) 736 9911 Bedroom(s): 3 Kemuning Aman Apartment Menara U Email: [email protected] Bathroom(s): 2 Type: Condominium/ Type: Condominium/ Description: Basic unit, well- serviced residence serviced residence Kemuning Aman Apartment Type: Condominium/ maintained. Located in Seksyen 22: Tenure: Freehold Tenure: Leasehold Type: Condominium/ serviced residence easy access to Federal Highway, Asking price: RM295,000 Asking rent: RM1,300 serviced residence Tenure: Leasehold NKVE, Elite and Kesas Highways. Built-up area: 736 sq ft Built-up area: 450 sq ft Tenure: Freehold Asking price: RM380,000 Near Batu Tiga KTM Komuter Bedroom(s): 3 Bedroom(s): 2 Asking rent: RM850 Built-up area: 745 sq ft station, Tesco, Giant, Aeon Big, Bathroom(s): 2 Bathroom(s): 1 Built-up area: 736 sq ft Bedroom(s): 1 Subang Parade, Management & Description: Located in Description: Brand new, Bedroom(s): 3 Bathroom(s): 1 Science University, UiTM, i-City. Kemuning Utama, Seksyen partly furnished unit. Bathroom(s): 2 Description: Sri Acapella Agent/negotiator: Kim Loh of 33, Shah Alam. Comes with Agent/negotiator: Alex Tong of Description: Brand new Serviced Apartment is in Seksyen Total Realty Sdn Bhd (REN 16497) grilles, ceiling fans, lights and Everest Properties (REN 10172) apartment located in Kemuning 13. Unit has kitchen cabinet, Tel: (016) 294 2530 two covered car park bays. Tel: (012) 363 3498 Utama. One car park bay. built-in wardrobe, TV cabinet, Email: [email protected] Agent/negotiator: Peter Email: [email protected] Agent/negotiator: Peter air-con and water heater. Lee of iProp Realty (USJ) Lee of iProp Realty (USJ) Agent/negotiator: Khairi of Valencia Apartment Sdn Bhd (REN 04182) Menara U (master bedroom) Sdn Bhd (REN 04182) Reapfi eld Properties (Shah Type: Condominium/ Tel: (017) 387 3356 Type: Condominium/ Tel: (017) 387 3356 Alam) Sdn Bhd (REN 01555) serviced residence Email: [email protected] serviced residence Email: [email protected] FRIDAY NOVEMBER 6, 2015 • THEEDGE FINANCIAL DAILY LEGAL | PROPERTY EP11

What you need to know about Real Property Gains Tax

RPGT are the alphabets that matter for the slow property season

Chris Tan is a lawyer, author, speaker and keen observer of If you have questions for Chris Tan, please go to the Tips section of real estate locally and abroad. He is founder and managing theedgeproperty.com. BY CHRIS TAN partner of Chur Associates. Disclaimer: Th e information here does not constitute legal advice. Please seek professional help for your specifi c needs.

eal estate investors in Malaysia assessment in an amount equal to the sum FROM ACQUISITION MALAYSIAN AND NON-MALAYSIAN are very alert to any change TO DISPOSAL PERMANENT RESIDENT COMPANIES arrived at by applying the table above. in Real Property Gains Tax First to third year (%) 30 30 30 (RPGT), especially during Oc- 4. When can I get a refund? tober, when the national budget Fourth year (%) 20 30 20 If the 3% retention sum paid by the seller to is tabled in parliament. That’s Fifth year (%) 15 30 15 IRB is in excess of the RPGT payable, then Rbecause RPGT could be the deciding factor Sixth year onwards (%) 0 5 5 the IRB must refund the seller the excess in deciding whether to sell now or later. Since amount. This refund may not take place 2007, we have seen a gradual increase in the of the sale and purchase agreement. Based assess the RPGT chargeable gain? Or, heav- instantaneously and depends on the effi - RPGT rate, from as low as 0% to as high as on Form CKHT 1A submitted by the seller, en forbid, you have to sell, but the price has ciency of the seller’s IRB branch. Th e norm 30% as announced in Budget 2014. Thank- the IRB will then assess the requisite RPGT dropped. Th ere are three scenarios under is for the seller to receive a cheque for the fully or not, there’s not been any adjustment chargeable and refund the balance of the 3% the RPGT regime: refunded amount in the postbox. to the rate since but there’s still important retention sum (if any) to the seller. a) if the disposal price exceeds the acquisi- stuff about RPGT you need to know. If the seller is an individual selling the tion price, there is a chargeable gain; 5. What if I calculate my payable tax property after fi ve years, the seller or sell- b) if the disposal price is less than the acqui- wrongly? 1. How much tax do I have to pay? er’s lawyer will fi le Form CKHT 3 to apply sition price, there is an allowable loss; and, Th e lawyer overseeing the sale and purchase Any vendor who sells their property is re- to be exempted from the 3% retention sum c) if the disposal price is equal to the acqui- agreement between seller and buyer will quired to pay RPGT. Th e Finance Act 2014 payment. sition price, there is neither a chargeable normally charge a nominal fee to fi le their sets out the current prescribed tax rate as It is worth noting that all Malaysians and gain nor allowable loss. respective CKHT forms. follows. (Please refer table) permanent residents are entitled to a one- While seller and purchaser can save costs time exemption from the 3% retention sum Th us, where there is a chargeable gain by fi ling the forms themselves, bear in mind 2. What is the 3% of disposal price? payment when disposing of their private upon disposal of any real property, then there is a penalty for making incorrect re- As of Jan 1, 2015, the seller or seller’s lawyer residential property. RPGT is applicable according to the rates turns. acting on behalf of the seller shall retain and Th ere is no requirement that this entitle- in the table above. However, in calculating Th is can happen if you omit particulars pay 3% of the disposal price to the Inland ment must be exercised on your fi rst-ever chargeable gain, the seller is allowed to de- relating to any disposal of chargeable as- Revenue Board (IRB). Th is is applicable when property disposal, thus you can decide to duct from the chargeable amount certain sets; miscalculate the chargeable gains; or the seller is disposing of the property within use the exemption for any future disposal. expenses as follows: overstate the allowable loss. fi ve years of signing the sale and purchase However, you must inform your lawyer of a) the cost of preserving and improving the The penalty is a fine not exceeding agreement. Companies and foreigners are such an intention before the sale and pur- value of the property upon acquisition; RM5,000, and a special penalty of double liable to pay the 3% regardless of when they chase agreement is drafted. b) the cost to confi rm, preserve and defend the amount of the tax which has been un- dispose of the property. the ownership of the property; and, dercharged. Sale and purchase agreements usually 3. How do I calculate chargeable gains c) incidental costs during the sale of the prop- Th ere were no adjustments to RPGT rates contain a clause to cater for RPGT, which and allowable losses? erty, including legal fees, commissions to for Budget 2016, so investors can now better states clearly that both seller and purchaser Let’s say the price of your property has gone real estate agents and other expenses. plan and calculate whether their return on are to submit their respective Forms CKHT way up, and you now want to sell, but it’s not investment will justify selling their property 1A and 2A to the IRB upon payment of the yet been fi ve years since you signed the sale Where there is an allowable loss, tax re- because prices are no longer appreciating 3% retention sum within 60 days of the date and purchase agreement. How does the IRB lief is allowed to the seller for that year of as vigorously as a few years back. FRIDAY NOVEMBER 6, 2015 • THEEDGE FINANCIAL DAILY EP12 PROPERTY | FEATURE

5 things you shouldn’t do when buying your fi rst home

According to the collective wisdom of real estate agents

BY RACHEL CHEW

t’s one of the biggest decisions of your life. 01 02 0403 05 There are so many things to think about DON’T JUST ASK DO NOT BUY DO NOT BE DON’T IGNORE DO NOT HURRY when you’re search- UNCLE OR AUNTY PROPERTY STUBBORN. RELATED COSTS ing for that one house to call your own that it’s easy — ASK THE BEYOND YOUR DECIDE ON WHAT Don’t be hurried or har- I PROFESSIONAL MEANS (DUH) YOU WANT BUT to overlook small but impor- Be realistic about your assed into buying, and tant details. BE FLEXIBLE budget. If what you be patient when you But fi rst, let’s recap the big Because one mistake Moving into your own have in your pocket is fi nd the process taking mistakes. Coming in at No. 1 can cost you your life home should be a joy- Whether it’s the loca- just enough for the 10% longer than expected — is overpaying for property. savings, so don’t risk it ful event. You should be tion of the property, the down payment, you may because it will. If you feel Th is is why theedgeproperty. by only seeking advice enjoying your life in your type, price or surround- need to save more fi rst. that it’s the right house in com provides you analytical from family, friends and new home, not stress- ing amenities, be sure Yes, you may be able to a right neighbourhood, tools to check price trends relatives who are not in ing out over how to pay of what you’re look- borrow the other 90% plan on a few house and and reference prices. Close- the industry. Ask the pro- for maintenance fees or ing for. However, you from the bank, but there neighbourhood inspec- ly following behind at No. 2 fessional, licensed real meet the mortgage re- should also be fl exible are other costs and pay- tions at diff erent times of is buying property you re- estate agent and nego- payments. and be open to alterna- ments to be made when the day so you can un- ally like, only to fi nd it un- tiator who knows more Choose an asset you tives. Have an Option B buying property, such derstand more about comfortable to stay in when about the market, indus- can aff ord now. Do not in mind, because after as legal fees, stamp duty your potential future you fi nally move in — and try trends and issues that look at the maximum listing down all the crite- and insurance. Consult a home and the commu- have no money left for ren- potentially aff ect the val- amount you could bor- ria for your dream home, professional on the true nity you’ll be living in. ovations. Moral of the story: ue of the piece of proper- row, even if you’re certain you may also fi nd it’s way amount you should pre- think about whether the de- ty you like. Th eir expert you’ll be earning more in over budget. Knowing pare before going shop- sign and location of the prop- eye could also help you the future. Even as your what you want, and can ping. Th is is crucial. erty really suits your lifestyle avoid costly renovations income increases over aff ord, can save time and before buying it. and repairs. the years, the expenses money. With that out of the way, that you can and cannot here is the collective wisdom control (Goods and Ser- of a few experienced real es- vices Tax, toll, petrol, etc.) tate agents on buying your will rise as well. fi rst home.

FRIDAY NOVEMBER 6, 2015 • THEEDGE FINANCIAL DAILY FRI EP14 PROPERTY | HOME IDEAS

PHOTOS BY STEFAN LUCIAN FROM HOMEDIT

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5 P 7 inspiring ideas for that empty C p e t s space under the stairs b fi t New meaning for the term, below stairs

BY RACHEL CHEW

WHAT do you do with that empty space under the fl ight of stairs in your house? Th e usual answer is to build storage, such as shelves, or place a door over it and turn it into a soon-to-be forgotten storeroom. Draw a little bit of inspiration from Harry Potter’s under-stairs bedroom, which shows how that space can be transformed for myriad uses. Here are seven inspirational under-stairs space ideas for those who want to utilise the odd space creatively. Just pick the one that matches the space you have and transform it into the coolest spot in your home!

1. PET HOUSE If you and your owl don’t sleep under the stairs, why not transform it into a cosy, spacious dog house for the furry family mem- ber? And if the other half 2. WINE CELLAR is mad at you for whatever Yes, you too can have a wine cellar. Well, you can always keep yourself motivated reason, you can crawl in- and start with a mini cellar under the stairs. You may soon fi nd that it’s just as good side for a time out. as any other cellar. FRIDAY NOVEMBER 6, 2015 • THEEDGE FINANCIAL DAILY HOME IDEAS | PROPERTY EP15

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4. READING NOOK If your under-stairs space is only a tiny, empty spot in one corner of your house, you don’t have to be too ambitious about it. Simply 3. PANTRY OR MINI BAR turn it into a cosy reading Under-stairs spaces are often the right size for a handy pantry or mini bar, especially nook where you can have if the under-stairs space is in the living room. A convenient spot to make yourself a some peace and quiet and drink while settling down to a good movie. a little bit of ‘me’ time.

5. CHILDREN’S PLAYROOM Children always need more play space than you can ever give them. So, give them one more! Th at bit of space under your stairs may be ideal as a fun playroom fi lled with their favourite toys and books.

6. HOME OFFICE If all you need for a home offi ce is a laptop, fax machine and printer, then the space under the stairs could be more than good enough.

7. POWDER ROOM Having a powder room under the staircase is rare but it is not impossible. You just need enough space to fit in a sink, mirror and the toilet. So if you have a generous under-stairs d space, you could have d the making of a chic and discreet powder room.