In the Year of the FIRE MONKEY

MAKE BETTER DECISIONS

FRIDAY JANUARY 15, 2016 ISSUE 2087/2016

A PULLOUT EVERY FRIDAY WITH

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

ep3 NEWS ep6 FEATURE ep8 FEATURE FIND YOUR Cost saving, trends to Time for bargains ‘Lower returns NEXT HOME HERE! impact offi ce space in the Golden Triangle? to be the norm’ TheEdgeProperty.com PROPERTY INVESTMENT in the year of the FIRE MONKEY The 3,000-strong crowd Dato’ Joey Yap’s tips on real estate investment in 2016 from the at Joey Yap’s Feng Shui and Astrology Seminar in perspective of Chinese metaphysics. See story on pages ep4 & 5. Kuala Lumpur on Jan 10.

KENNY YAP/THE EDGE PROPERTY FRIDAY JANUARY 15, 2016 • THEEDGE FINANCIAL DAILY EP2 PROPERTY | NEWS

ON NEWS ROUNDUP Go to TheEdgeProperty.com for more property news

Flat growth for Klang Valley Hua Yang plans mixed-use Lumpur, comprises 11 towers hous- director of Sime Darby Property at www.Th eEdgeProperty.com property market - WTW development in Plentong, ing a total of 813 units of between since June, 2011. Johor Bahru 1,162 sq ft and 5,037 sq ft in built-up He was instrumental in steering Hua Yang Bhd plans to develop a area. Prices start at RM1.1 million or Sime Darby in the Malaysian-led mixed-use development with a GDV RM800 psf. consortium to redevelop Batter- of RM346.4 million in Mukim Plen- Scheduled to be completed by the sea Power Station in London. He tong, Johor Bahru. fourth quarter of 2019, Agile Mont’Ki- previously held management and In a fi ling with Bursa Malaysia on ara is the fi rst international project board positions in companies in Jan 11, the property developer said it by Agile Property Holdings. Th e de- Malaysia, Europe and Asia, cover- will acquire eight parcels of freehold velopment has a gross development ing plantation, property, construc- land totalling 73.16 acres in Johor value (GDV) of RM1.4 billion. tion, manufacturing and services. Petaling Jaya’s Bahru for RM75.6 million through About six acres of the 10 acres Prior to joining Sime Darby, Damansara the purchase of Grand View Realty will be used for recreational pool Abd Wahab was group chief ex- areas among the Sdn Bhd, a Johor-based property and park areas, said Agile Real Es- ecutive of Kumpulan Guthrie Bhd most popular Demand for high-rise residential development company. tate Development CEO Wilson Ren and Golden Hope Plantations Bhd. addresses in the property is expected to remain fl at To be developed in eight phases, at the launch. in the next two to three years owing the proposed project will feature clus- “The development exuberates Penang undersea tunnel Klang Valley to a mismatch between supply and ter homes, semi-detached homes, tranquillity and nature, making Agile work sees slight delay demand, according to international shop offi ces and homes under the an oasis in the heart of Mont’Kiara,” Consortium Zenith BUCG Sdn Bhd property consultant C H Williams Johor aff ordable housing scheme. he added. (CZBUCG), the main contractor for Talhar & Wong Sdn Bhd (WTW). Hua Yang now has a total undevel- the RM6.3 billion undersea tunnel Citing the high-end segment oped land bank of 550 acres, with a Wahab no longer Sime Darby project in Penang, will commence as an example, WTW managing potential GDV of RM4 billion. COO construction on June 15, behind director Foo Gee Jen said Kuala schedule. Lumpur has an existing supply of Agile Mont’ Kiara oﬃ cially CZBUCG chairman Datuk Zarul 36,252 luxury high-rise residential launched Ahmad Mohd Zulkifl i told Th e Edge The Edge units in 2015 of which about 75% Financial Daily the consortium Malaysia are shoebox units, of between 400 will fi rst begin construction of the Property sq ft and 600 sq ft in built-up area. three highways that form part of “We have far too many small the project before embarking on Excellence units, or what we call, shoebox building the 7.2km undersea tun- Awards 2015 units, in the market [which] are nel linking Penang island to the not what the end-user really wants. mainland. Until all existing units are filled Th e three road projects are the up, the high-rise residential mar- Tan Sri Dr Abd Wahab Maskan paired-road from Jalan Tanjung ket will remain fl at. And, that will relinquished his responsibilities Bungah to Teluk Bahang, the Air probably take more than one or as chief operating offi cer of Sime Itam to Tun Dr Lim Chong Eu Ex- two years,” said Foo at the launch Agile Mont’Kiara, a joint venture Darby Bhd on Dec 31 for health pressway bypass, and the bypass of WTW’s Property Market 2016 project between Agile Real Estate reasons, the Sime Darby Bhd said from Gurney Drive to Tun Dr Lim report on Jan 12. Development Sdn Bhd and PJ De- in a fi ling with Bursa Malaysia on Chong Eu Expressway. Th ese have The Edge Communications Sdn Bhd “We are concerned about the velopment Holdings Bhd, was of- Jan 11. a combined length of 21.2km. As (266980-X) future supply [that] will see an in- fi cially launched by Kuala Lumpur Abd Wahab has also vacated his the highways would take about six Level 3, Menara KLK, No 1 Jalan PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya, crease of 37.2% (49,752 units) of new mayor Datuk Mohd Amin Nordin managing director position in Sime years to complete, he estimates that Selangor, Malaysia luxury high-rise units injected into Abd Aziz on Jan 9. Darby Property Bhd. Abd Wahab CZBUCG would begin the environ- the market [by 2017] in Kuala Lum- The 10-acre freehold Agile had been the COO of Sime Darby mental impact assessment for the pur,” he added. Mont’Kiara in Mont’Kiara, Kuala since June, 2008, and managing undersea tunnel by 2017 or 2018. Publisher and Group CEO Ho Kay Tat

Editorial For News Tips/Press Releases If you have any real estate-related events, email us at [email protected]. Tel: 03-7721 8219 Fax: 03-7721 8038 Email: [email protected] LAUNCHES & EVENTS Events listed here will also appear on TheEdgeProperty.com.

Senior Managing Editor Azam Aris Contributing Editor Sharon Kam Editor Rosalynn Poh Property Tips for Challenging Date: Jan 16 and 17 (Sat and Sun) 73 Jalan Maarof Bangsar, Featuring a collection of Australian Deputy Editors E Jacqui Chan, Times Ahead Venue: MCity Sales Gallery, Icon 59200 Kuala Lumpur real estate across Melbourne, Wong King Wai Date: Jan 16 (Sat) Tun Razak, No 1, Jalan 1/68F, Off Time: 2pm Perth & Brisbane. Projects include Assistant Editor Lam Jian Wyn Senior Writer Racheal Lee Venue: MIEA Penang Branch, Unit Jalan Tun Razak, Kuala Lumpur Contact: (03) 2201 5818 / landed property, townhouses and Writers Chai Yee Hoong, 9 & 10, 5th Floor, Axis Complex, 35 Time: 10am to 6pmContact: (011) 189 8878 (Daniel Lim) condominiums located in high- Rachel Chew, Hannah Rafee, Jalan Cantonment, 10350 Penang (03) 9221 8888 / (018) 271 Topics include understanding growth areas with good potential Tan Ai Leng, Natalie Khoo, Ewe Shufei Time: 8.30am to 5pm 7221 (Samantha Onn) the London property market for capital appreciation and a Art Director Sharon Khoh Contact: (04) 228 8333 Among the talks at the event and sub markets, the best types conducive living environment. Design Team Cheryl Loh, Organised by the Malaysian is one by feng shui consultant of properties to buy, how to Valerie Chin, Aaron Boudville, Institute of Estate Agents Penang, Kenny Hoo, on “Good Feng Shui source for below-market value Aminullah Abdul Karim, this full-day seminar features Golden Tips to Greater Success properties, development fi nance Yong Yik Sheng, Tun Mohd Zafi an Mohd Za’abah, Noorain Duasa speakers who will share insights on in Economic Turbulence”, and a and more. Limited seats. international property investment property talk by Ishmael Ho of Ho Corporate trends, pitfalls in land transactions Chin Soon Research Sdn Bhd. Managing Director Au Foong Yee and the Penang property outlook Deputy Managing Director Lim Shiew Yuin for 2016. Interested participants UK Property Finance and Tax can pay a fee to attend. Seminar Advertising & Marketing Date: Jan 16 (Sat) To advertise contact Mah Sing BaziChic Chinese Venue: DoubleTree by Hilton GL: (03) 7721 8000 Fax: (03) 7721 8288 Metaphysics Consultancy Johor Bahru, Level 11, Meeting Chief Marketing Offi cer Date: Jan 17 (Sunday) Rooms 1 & 2, No 12 Jalan Ngee Showcase of V@Summerplace Sharon Teh (012) 313 9056 Venue: Icon Residence, Mont Heng, 80000 Johor Bahru Date: Jan 16 (Sat) General Manager, Digital Media Kiara, Level 7 Function Room, 1, Time: 2pm to 6pm Venue: Connoisseur Sales Gallery, Kingston Low (012) 278 5540 Senior Sales Managers Persiaran Dutamas, Kuala Lumpur Contact: (012) 340 4931 (Diana) 8-8B Jalan Bukit Meldrum, Geetha Perumal (016) 250 8640 Time: 10am to 6pm / (019) 227 5317 (Anna) Jalan Tanjung Puteri, Johor Fong Lai Kuan (012) 386 2831 Contact: (03) 9221 8888 There will be a talk on fi nance Bahru, 80300 Johor Bahru Peter Hoe (019) 221 5351 / (012) 215 2331 and tax by Jordan Smith of Australian Property Showcase Time: 11am to 5pm Gregory Thu (012) 376 0614 Creative Marketing Topics covered will include 2016 Capricorn Financial, London. Date: Jan 16 to 17 (Sat and Sun) Contact: (07) 221 0210 Chris Wong (016) 687 6577 feng shui, Chinese astrology, Showcase properties include Venue: Mersawa & Meranti, Showcasing the units available Head of Marketing Support & Ad Traffi c auspicious dates, as well as the Kidbrooke Village Centre Eastin Hotel Petaling Jaya, 13, in V@Summerplace, including Lorraine Chan (03) 7721 8001 free BaZi and tea leaf divination in Greenwich and the Royal Jalan 16/11, Pusat Perdagangan 642 sq ft 1-bedroom suites, 1,108 Email: [email protected] readings. Seats are limited. Arsenal Riverside in Woolwich. Phileo Damansara, 46350 sq ft duplex suites and 1,375 sq ft Please RSVP at 012 215 2331. Petaling Jaya, Selangor 3-bedroom serviced suites. The The Edge Property is published and London Property Seminar Time: 10am to 7pm project is located near the Johor distributed with The Edge Financial Mah Sing Feng Shui Date: Jan 16 (Sat) Contact: 016 228 9150 Bahru Customs, Immigration Daily every Friday. For more property data, listings and news, Presentation Venue: Saff ron International, / 016 228 8691 and Quarantine complex. go to TheEdgeProperty.com. FRIDAY JANUARY 15, 2016 • THEEDGE FINANCIAL DAILY NEWS | PROPERTY EP3 Cost saving, trends to impact offi ce space

BY HANNAH RAFEE

n manoeuvring around the slow property market, multi- national companies (MNCs) are looking at ways to save cost. Knight Frank Malaysia Sdn Bhd Property managing director Sarkunan Market ISubramaniam told The Edge Ma- laysia that office space has become Outlook an integral part of cost savings and Oﬃ ce space has grown to become the largest cost for a company, thus an integral part of a key focus for MNCs in 2016. cost savings. for “Th e offi ce market has evolved. Offi ce space used to be something Sarkunan : The economy today is volatile..the pancy levels. However, rental rates high, then fl uctuate dramatically the 2016 that companies needed in order to key is to survey these economic changes to of well-located and good grade of- next. Th e key is to survey these eco- conduct businesses. It has now grown address the oﬃ ce market fi ce spaces are expected to remain nomic changes in the next 10 years to become perhaps the largest cost resilient,” he elaborated. in order to address the offi ce market for a company, thus an integral part total absorption and its movements Landlords are adopting aggressive and make the changes accordingly.” WEDNESDAY of cost savings. Th e question is how over the years, offi ce spaces under marketing plans to improve their Meanwhile, a few underlying fac- do we go about it in order to sustain construction and market trends in overall occupancy levels, he says. tors are causing changes in the offi ce JANUARY | 20 | 2016 its demand and occupancy,” he said. 2016. Meanwhile, tenants continue to be market this year. “We need to study Sarkunan is set to present a talk Sarkunan foresees that the shift offered attractive rent, incentives the impact and the changes in the SIME DARBY on “Offi ce Market Performance and from a “landlord” to a “tenant” mar- and tenancy terms such as longer offi ce environment. In terms of legal CONVENTION Outlook” at the upcoming 9th Ma- ket will cause the take-up rate and rent-free periods. issues, we need to know how dynam- CENTRE laysian Property Summit (9MPS) occupancy levels to drop in 2016. Th e correlation between offi ce ic leases are today, and also the need 2016 organised by the Association “Th e overall rental rate may dip occupancy and the market will be for fl exibility. Most importantly, we of Valuers, Property Managers, Es- over time due to heightened com- more signifi cant in 2016. need to understand what is driving tate Agents and Property Consult- petition in our tenant-favoured en- “Th e contraction of the oil and gas the market,” he said. ORGANISED BY ants in the private sector (PEPS) vironment. Many enterprises are sector is a signifi cant trend leading “Moving forward, things are going on Jan 20. Th e Edge Malaysia and freezing their business activities, up to the fall of oil prices. Th e main to change as far as corporate occu- Th eEdgeProperty.com are media part- reducing investment on staff and lifeline of one of the leading sectors pancy is concerned,” he predicts. ners of the event. It will cover the consolidating their positions due to has dried up,” said Sarkunan. “Th e Visit www.peps.org.my for more latest offi ce market statistics such as the slow economy. Th is will impact economy today is certainly more vol- details on 9MPS and to download supply, occupancy rate, rental rate, the take-up rate and overall occu- atile ... one day [oil prices] could run the registration form.

MREITs may acquire more assets this year

BY LAM JIAN WYN urations and stable occupancy rates as well as healthy balance sheets with Malaysian real estate investment gearing ratios of 0.14 to 0.44 times, trusts (MREITs) may step up acquisi- their good valuations could shield in- tions this year as the rental reversion vestors from a sudden surge in bond cycle peaked in 2014, which helps yields. with asset valuations said Malaysian “For investors looking for yield in REIT Managers Association chair- these markets, they are increasingly man Datuk Stewart LaBrooy. turning to dividend stocks for secu- “Channel checks indicate that rity — and what better way than in prime retail asset valuations are REITs. Th is is refl ected by the stable trending closer to more realistic cap unit prices REITs have displayed in the rate values of above 6% from 5.5%, current volatile stock market,” he said. while industrial cap rates are fetching “However, I believe that we will see better rates of 7% to 8%, as evident LaBrooy: For the MREIT market, buy on price a muted REIT performance from an from Axis REIT’s recent acquisitions weakness and hold. The dividends and capital earnings and capital growth perspec- and letters of off er,” he told Th e Edge growth will never disappoint in the long run. tive, as rental gains will be fl at unless Malaysia. tenancies are pegged to automatic LaBrooy, who will be speaking at reversions upon renewal. the 9th Malaysian Property Summit On the US Federal Reserve’s inter- “Fixed deposit rates are rising as (9MPS) 2016, to be held at the Sime est rate hike, LaBrooy says he expects banks compete to attract funds (some Darby Convention Centre in Bukit a repricing of MREITs as uncertains are off ering 4% to 5% per annum). Th ey Kiara on Jan 20, will present a paper over the global central banking sys- are tantalisingly close to REIT returns. on the REIT market, its performance tem’s next move has been resolved “For the MREIT market, buy on and outlook. Th e Edge Malaysia and and the ringgit’s volatility has sub- price weakness and hold. Th e divi- Th eEdgeProperty.com are media part- sided. dends and capital growth will never ners of the event. “However, there is a strong pos- disappoint in the long run.” LaBrooy, who is also a former sibility that these [rate] increases LaBrooy’s top picks include REITs CEO of Axis REIT Managers Bhd, could continue well into 2016 and with long contractual leases in offi c- also notes that MREITs may have put pressure on the ringgit,” he said. es such as KLCC Stapled REIT and the opportunity to buy properties “We need to keep an eye on the MRCB-Quill REIT, industrials with from companies seeking to mone- volatile bond markets as that will strong portfolios such as Axis REIT, tise their assets to recapitalise their determine if Bank Negara [Malaysia] and retail types with “fi ve-star assets” balance sheets given the economic would raise the overnight policy rate such as Pavilion REIT, Sunway REIT, slowdown. in 2016. However, the view is that it IGB REIT and CapitaLand Malaysia However, he said the challenge will hold it this year at 3.25%.” Mall Trust. “Th ey will ride the current lies in buying yield-accretive assets. According to LaBrooy, as MREITs’ market volatility with ease,” he says. He also observes a gradual tightening fundamentals are backed by steady Visit www.peps.org.my for more of credit, which may crimp lending organic earnings growth such as pos- details on 9MPS and to download the and growth. itive rent reversions, space reconfi g- registration form. FRIDAY JANUARY 15, 2016 • THEEDGE FINANCIAL DAILY FRI EP4 PROPERTY | COVER STORY

PHOTOS BY KENNY YAP/THE EDGE PROPERTY A private person

STARTING his metaphysic consultation career as a 20-year old, Dato’ Joey Yap has gained international popularity over the years. He is famous for his cal “Joey Yap style” of modern feng shui in a interpretation, teaching the destiny ed analysis in a scientifi c and a relatively con simple way. the Yap had never expected to become famous or be the icon for feng shui. of a “I didn’t go out seeking fame. When (Ro I started the company, my main ob- dom jective was to disseminate the infor- ert mation of destiny analysis and to off er people consultation services to solve is w their problems,” said the 39-year-old dis Chinese Metaphysics expert during an bu interview with Th eEdgeProperty.com after his Feng Shui and Astrology sem- See inar 2016 in Kuala Lumpur on Jan 10. Ch Fame and popularity came along Wh following an opportunity to appear com on TV shows in Australia and Malay- to sia to share his thoughts on feng shui the and after being invited to hold his own Yap: There are strong feng shui seminars. the elements in Malaysia’ natal “I think I’m very much a private rel chart which could support the person, I enjoy writing and compiling of country’s growth in 2016. technical information for my books, tho and I enjoy thinking. Normally, I will du start work around 11pm to 1am, as I the am most creative during ‘rat’ hours hav (11pm to 1am in Chinese metaphys- Em ics),” he remarked. fec Being a father of a pair of twin see Optimism amidst challenges daughters, Yap is trying to squeeze in more family time despite his busy aph schedule. He will be fl ying to Singapore des — the next stop in his global tour to- me morrow (this Saturday). Th e Joey Yap’s A year to invest in property for the long term, says Joey Yap Feng Shui and Astrology 2016 global bu tour covers 11 cities, including New the York, Jakarta, Manila, Vancouver, Mel- es; BY TAN AI LENG competition and people may have diffi - perspective, as the metal element clashes bourne and Ho Chi Minh City. is t culty controlling their temper and there with the fi re element, the ringgit’s (metal In order to spend more time with an earish oil prices, economic will be explosive behaviours, which trig- element) value will depreciate further. So, his family, he plans to move his train- tho turbulence, ringgit deprecia- ger disputes. “instead of keeping the cash in the bank, ing platform online via live webcasts tion and negative news from The metal element clashing with the it’s better to accumulate assets”, he added. to provide training to his students all around the world have cast a dominant fi re element will aff ect industries over the world. shadow on 2016. However, Chi- related to the metal element including the Klang Valley property market outlook “Webcast is something new that I am nese metaphysics consultant fi nancial and banking sectors, automotive From the feng shui perspective, Kuala trying to implement so I can have more BDato’ Joey Yap sees a silver lining behind and manufacturing segments, and legal as Lumpur’s Mont’Kiara and Bangsar, and time with my family. As times change, G the gloominess. well as military professions. Semenyih in Selangor are showing good we have to do things to follow the trend During an interview with Th eEdgeProp- Meanwhile, the earth element is the signs of growth. and not in conventional ways. Th rough erty.com following the end of his presenta- weakest this year. Industries related to the “There are some good stars in the online training, I can reach the whole B tion at his Feng Shui and Astrology Semi- earth element will see slow growth in the Mont’Kiara area, I don’t think it’s running world,” he explained. nar 2016 in Kuala Lumpur last Sunday, Yap year of the Fire Monkey, including the prop- out of steam yet as an investment hotspot,” Yap is the chief consultant of the I said the Year of the Fire Monkey will see erty, construction, insurance, mining and Yap explained. Joey Yap Consulting Group and found- 2 the Fire element being dominant this year. escrow services sectors. He noted that for those looking to buy a er of the Mastery Academy of Chinese i Chinese astrology is divided into Wuxing property for their own stay, Bangsar is an- Metaphysics. Yap contributes a regular or the fi ve elements — metal, wood, water, Assets instead of cash other good choice. “Th e mountain dragon is Feng Shui column in Th e Edge Prop- J fi re and earth, with each element having its Th e fi rst six months of this year may see the in good long lasting position, off ering good erty and provides Feng Shui advice on n own strengths. ringgit depreciate to RM5 against the US Feng Shui to residents there. However, in Th eEdgeProperty.com. t According to Yap, the overall outlook for dollar, predicted Yap. Due to the ringgit’s terms of capital appreciation, it might be b Malaysia is optimistic as the country will depreciation, many developers have diver- slower as there is no growth star in that continue to see positive growth. “Over- sifi ed their portfolio to the overseas market. area,” he said. S all, I would give a B+ to 2016, as there are Yap sees this as a smart move as this could In feng shui, mountains and water are dragons, however, its power has weakened K strong elements which support the coun- help them cushion the currency volatility. two important elements as they repre- as many roads have been built in the area M try,” he said. Yap, himself a property investor, also sent Yin and Yang — elements to consid- — breaking the neck of the dragon — the a However, it will remain a challenging gave some pointers on property investing er when choosing properties. Feng Shui is growth momentum is still there but the t year for the country as there may be a cri- this year. a metaphysical science where one learns pace is slowing. Overall, TTDI is still a good i sis looming in the horizon. However, Yap “In general, I would say north and south to recognise and tap the Qi (cosmic ener- place,” he explained. t said the crisis could be resolved with the are the ‘most wanted’ directions as the plac- gies) of the living environment to benefi t He added that popular places such as unity of Malaysians. es in these two directions — Penang and an individual’s life. Kota Damansara, Damansara Heights, Bukit t He added that there are indications of Johor — are booming. Although the Johor Semenyih is a good location, especially Tunku and Seputeh are still great as the w some problems or accidents related to market has slowed, it’s still a good place after the opening of a new highway, said mountain in these places are still intact, b transportation which will make the head- to look at in the long-run,” he remarked. Yap. “Th e highway has improved the acces- off ering good feng shui to those residing m lines this year. Despite the slowdown in the property sibility to Semenyih. From the Feng Shui in these areas. “Th e water element hidden underneath is sector, Yap suggested that 2016 will be a perspective, it has also opened a way for l strong, so it might be a tsunami alert while good year for buying a house for one’s own ‘water’ to pass by that area, linking wealth Signs of recovery in 2018 S the strong fi re element indicates strong stay or for long-term investment. to Semenyih,” he said. Despite the negative news and sentiments winds, which could mean a typhoon or “In general, a lot of [property] players are He also saw good feng shui in Kuala whirling around suggesting that Malaysia’s e wind-related disaster,” he explained. slowing down their development pace. If Lumpur’s Taman Tun Dr Ismail (TTDI), economy may dive this year owing to the fl Malaysia has strong metal elements but you are a true investor, now is a good time Damansara Heights, Bukit Tunku, Seputeh weak ringgit and poor commodity prices, the element will clash with the dominant to buy properties as people may be des- and Kota Damansara in Selangor. But he Yap is confi dent that the economy will re- a fi re element and wood element this year perate to sell. But do keep in mind, it’s for noticed that the strength in the KLCC area main intact. “Growth may be slower with a — signalling confl ict and disputes as well long-term investment — it is not a good and Damansara Perdana area in Petaling a lot of challenges ahead but it defi nitely as a possible “explosion” incident. time for speculation,” he said. Jaya has weakened. will not hit bottom,” he said. h A strong fi re element also represents Furthermore, from the Chinese astrology “TTDI has one of the oldest (mountain) “We will have some challenges economi- FRIDAY JANUARY 15, 2016 • THEEDGE FINANCIAL DAILY COVER STORY | PROPERTY EP 5

01. Yap taking a selﬁ e with his fans during one of his book signing sessions at the seminar on Sunday.

02. About 3,000 participants attended the full day Fengshui & Astrology - seminar in English on Sunday. y - 03. Seminar participants also took the opportunity to ﬁ nd out more about s cally and politically, but Malaysia is located theedgeproperty.com, the seminar’s media partner. i in a good area. As long as people are unit- y ed and the business community wants to 04. Participants checking out some of Joey Yap’s books on Chinese y continue to grow, things will improve in metaphysics. the long run,” he explained. e On the property market, he said signs of a rebound will only appear by end-2017 n (Rooster year) as the earth element will - dominate in 2018. He expects another prop- - erty boom then. r “Currently, although the earth element e is weak, the growth momentum did not d disappear. Property prices might dip a little n but it will not be a sharp decline,” he said. m - Seeking guidance from . Chinese metaphysics g When times are bad, more people will be- r come interested in Chinese metaphysics - to provide them with better insights into i their destiny, observed Yap. n Interestingly, during the Q&A session at the seminar, a number of questions were 03 e related to changing career paths or starting g of businesses. Some of them came from , those in the banking and oil and gas in- l dustries (metal and fi re element). Yap said I the weakening of the metal element would s have some impact on its related industries. - Employees in these industries may be af- 01 fected, hence their concern and need to n seek advice from Chinese metaphysics. e However, he clarifi ed that Chinese met- y aphysics is not fortune telling. “We call it e destiny analysis, providing options through a - method of systematic analysis,” he explained. s “A better year starts with better decisions, l but it’s not easy to make good decisions as w they depend on available options or choic- - es; the question is how to determine which is the best choice or option. What destiny h analysis does is to give you an insight into - those choices,” he explained. 02 04 s l m e e, Go for the long-term investment d h e BY RACHEAL LEE 9 in Cantonese followed by the seminar in Th is prediction is based on the weaker English on Jan 10. Each seminar attracted earth element this year. Industries belonging e IF there is one piece of advice to follow in more than 3,000 people. Th e Edge Property to this element may not perform as well as - 2016, it is to take the long-term view when and Th eEdgeProperty.com are the media others. Other sectors under the earth element e it comes to property investment. partners for the seminar in Malaysia. include insurance, mining and escrow indus- r Chinese Metaphysics consultant Dato’ Yap shared his analysis of the economy tries which may face confl ict and shortages. - Joey Yap said there will be many opportu- and various industry outlooks for 2016 from “Sectors that consist of the earth industries THE Feng Shui and Astrology sem- n nities in the property market in 2016 but the perspective of feng shui and astrology. have a strong wealth element, indicating that inars in Kuala Lumpur are part of a they should be long-term investments for During the Q&A sessions, most participants these sectors may have robust earnings but global tour by Dato’ Joey Yap that better returns. asked about property investments as well are not able to fully take advantage of their kicked off in London in October. It Yap told participants at Joey Yap's Feng as the viability of starting new businesses annual fi nancial prospects. Th is could be will cover 11 cities, including New Shui & Astrology 2016 seminar held in in the new year. due to the lack of the right products or op- York, Singapore, Jakarta, Manila, Van- ned Kuala Lumpur over the weekend that the An administration executive who only portunities,” Yap explained. couver, Melbourne and Ho Chi Minh rea Malaysian ringgit is expected to depreci- wants to be known as Joyce, had attended Industries of the fire element, such as City. Th e next stop of its Malaysian the ate further because this year belongs to the annual seminar before. She said she energy, oil and gas, aviation, media, food leg is on Jan 24 at Penang Equato- the the fi re element, which would clash with wanted to get a brief outlook for 2016 based & hospitality, pharmaceutical, electronics rial Hotel. od industries of the metal element such as on her BaZi. “I get to know my strengths and and telecommunications, will see greater Th e Edge Property and Th eEdge- the currency market. weaknesses, and what I should focus and im- competition, and cashfl ow problems. Wood Property.com are giving its readers as “Th e ringgit will depreciate further, and prove on. I will have higher self-awareness industries such as agriculture, education, a chance to win free tickets to the ukit the value of the money you have in the bank over things around me,” the 38-year-old said. timber and commodities will be bearish and Penang seminar. To participate, go the will decrease,” he said, which means: “It is Meanwhile, 80-year-old property inves- face confl ict such as legal matters as well as to Th eEdgeProperty.com and click act, better to buy property now as it is a buyers’ tor Allan Chu said feng shui helps him in excessive rainfall. on the banner, “Joey Yap’s Feng Shui ing market. However, do not buy for fl ipping.” his personal and family life. “I believe that Metal industries, which include automo- & Astrology 2016 Live Seminar,” to Th e Qi fl ow this year favours properties feng shui has power, and I will check the bile and manufacturing, legal, military and register your entry. Th en, ask Joey a located in the East, South, Southeast and feng shui aspects for many things so that I fi nancial and banking, will see competition Feng Shui-related question. If your Southwest parts of Kuala Lumpur, he said. know what I can be aware of. feng shui also and confl ict although there will be collab- question is judged to be one of the nts “Also, investors should invest in prop- takes care of my health, and that’s why I live oration and positive financial outcomes. most interesting, you win two tickets ia’s erties with strong brand names and have long,” he quipped. Water industries, such as tourism, beverage, to the Penang seminar. Th is contest the fl awless reputations.” According to the chinese Solar calendar, aquatics, service and logistics & transporta- is open to all Malaysian residents, es, Meanwhile, the 2016 feng shui stars Feb 4 is the start of the transitional year of tion, will be competitive but with opportu- and there is no limit to the number re- are located in the north west, west, east the Fire Monkey. Yap noted that the prop- nities as well. of questions that can be posed. Th e ith and south east. erty and construction industries, which are Other partners for the event included closing date is Jan 19. ely Th e seminars in Kuala Lumpur were represented by the earth element, may see UEM Sunrise Bhd and Eco World Interna- held over two days, with the one on Jan robust earnings but slower growth in 2016. tional Bhd. mi- FRIDAY JANUARY 15, 2016 • THEEDGE FINANCIAL DAILY EP6 PROPERTY | FEATURE Time for bargains in the Golden Triangle?

Central City Kuala Lumpur’s location looks hard to beat but prices of non-landed residences have moderated recently

BY NATALIE KHOO

entral City Kuala Lumpur, more popularly known as the Golden Triangle, is no stranger to locals and tourists. The popular shop- The Forum, located ping and entertainment district along Jalan Tun Razak buzzes 24/7 with the energy of has the highest annual asking rental yields. throngs of consumers. Buildings such as Pa- C Photos by Shahrin vilion Kuala Lumpur, Starhill Gallery and Low Yat Plaza are among the area’s famous land- Yahya/The Edge marks. This article covers the price trends of Property non-landed residences in areas such as Bukit Bintang, Bukit Ceylon, Chow Kit and Pudu. According to Lim, St Mary Residences (The Kuala Lumpur City Centre enclave has has excellent ﬁ nishes. been covered previously.) Geographically, these areas are bounded by Lebuhraya Sultan Iskandar and Jalan Tun Razak to the north gun to slow down. at RM133,200, followed Central City Kuala Lumpur. and extend south to Jalan Istana. “When the market by San Peng Flats, at “At one point, a lot of companies were Based on Th eEdgeProperty.com’s analysis slowed down, property RM139,826. [transferring] more singles or couples with of transactions, the average transacted price of prices generally took a hit. Analysis by TheEdge- fewer children [to work] here. Th is will save non-landed homes in Central City Kuala Lum- Th ere was a unit in one of Property.com shows that on rental cost as there is no need to rent for pur grew rapidly in the beginning of 2013, saw the condominiums that had the strata market in Cen- them bigger units of condominium, which a peak of RM730 per square foot (psf) in the a market price of RM2,000 tral City Kuala Lumpur is also explains why smaller units are the more third quarter of 2013 (3Q2013), and moderat- psf being sold for RM1,450 dominated by transactions popular ones now,” Lim says. ed between 1Q2013 and 1Q2015. Th e average psf, which is a big drop,” she of high-end condominiums transacted price was at RM687 psf in 1Q2015, says. “However, the market and low-cost flats, with Mid segment condos oﬀ er good value down 5.9% from its peak, which still represents did pick up a little bit to- few-middle class products In terms of price growth and indicative asking an 11.7% y-o-y improvement on RM615 psf in wards the very end of last off ered. In the 12 months rental yields, mid-range properties within city 1Q2014. Similarly, transaction activity, which year because they (inves- to 1Q2015, 21.7% of trans- boundaries are beginning to appear relatively surged to a peak at the end of 2013, has since tors) felt they needed to actions fell in the RM801 — attractive as prices in the urban areas of Great- subsided. Total transaction volume for the 12 make a move at some point Lim: The slowdown in the property RM1,000 psf range, 20.4% er Kuala Lumpur hit new highs. Th e slightly months to 1Q2015, fell from 1,018 units to 554 of time. If investors saw pric- market last year was due to poor market in the RM201 — RM400 psf older condominiums off er a good balance of units. Th e growth in both average price and es that catered to their indi- sentiment and tighter loan approvals. range, and 19.1% were for price, location and facilities, and have thus transaction volume in 2013 can be attributed vidual expectations, they above RM1,000 psf. Pavil- registered the highest growth in capital values. to a sudden increase in activity in the high-end were willing to start committing again,” she says. ion Residences and St Mary Residences were Analysis by Th eEdgeProperty.com shows that segment. Around a quarter (25.4%) of trans- Data from Th eEdgeProperty.com shows the most expensive condominiums on a psf the mid-range condominiums with the high- actions in 3Q2013 were for properties priced that in the 12 months to 1Q2015, the average basis, with an average price of RM1,629 psf est average price growth in the 12 months to above RM1,000 psf compared with16% in 2014. transacted price was RM687 psf in 1Q2015, and RM1,360 psf, respectively. Th e least ex- 1Q2015 were Kenanga Point (+20.3 to RM464 GMAC Realtors senior negotiator, Lim or an average price per unit of RM748,000. pensive projects were older projects such as psf), Angkasa Impian (+18.6% to RM551 psf) Jin May says the slowdown in the property Studios and 1-bedroom units were popular Malayan Mansion (RM171 psf), Tepian Loke and Villa Puteri (+10.1% to RM 463 psf). market last year was due mainly to the world- among buyers, a trend which was refl ected Yew (RM192 psf) and San Peng Flat (RM206 Average rental rates at high-end condo- wide market sentiment and banks being in the majority of transactions (19.5%) in psf). Th ese buildings are all situated in the less miniums ranged between RM4.53 psf at One tighter with loan approvals. “Some buyers the RM400,001 — RM500,000 price range. developed quarter of the city and are often Residency and RM6.04 at Pavilion Residenc- could not even get half of their loan amount In the same period, 20.2% of transactions poorly maintained. es. Th e analysis also shows that the highest approved. Investors are also cautious with were for above RM1 million. Lim notes that most residents of Central City annual asking rental yields were found at Th e where they are investing their money, while Lim says that studios and smaller units Kuala Lumpur are expatriates who work in the Forum (7%). Located on Jalan Tun Razak, some are just holding back to get better buys are in higher demand because their lower city centre, and rent homes there to live close to capital values at this old and dignifi ed project at the prices they want,” she says. Lim says absolute prices make them easier to sell. their places of work as well as the area’s abun- have hardly grown, but units here are able to that high-end non-landed residences such dant entertainment venues. Lim also observes command relatively high rentals because it as Pavilion Residences were typically selling Most expensive project that the demographic of renters here is younger is one of the few mid-range condominiums for RM1,600 psf in 1Q2015 and 2Q2015, and Th e most expensive project by average trans- than those who prefer to stay in the suburbs. within walking distance of the Bukit Bintang smaller units for about RM1,800 psf. acted unit price in the review period was “Central City Kuala Lumpur is a very fast- area. Th e Forum will also be located close to Savills Malaysia vice president of project Pavilion Residences (RM3.94 million), lo- paced area that is busy and congested day and the Tun Razak Exchange MRT station once marketing and estate agency, Jeff ri Rahim, cated atop the Pavilion shopping mall, with night. It is so convenient for those working in that is completed, further boosting its rental says that last year, non-landed homes in Bukit transaction prices starting at RM2.25 million. the city area to go about from home to offi ce but potential. “Th e rental yield in Central City Kuala Ceylon were transacted at about RM960 psf With unit sizes varying from 700 to 12,326 sq the older generation may not enjoy the hectic Lumpur is going at about 4% to 5% in general,” (Suasana Bukit Ceylon, 6 Ceylon) while units ft, the average transacted price was skewed lifestyle as much. Th ey would very much prefer says Lim. Jeff ri concurs. “Many of the units in in Bestari Condo in Chow Kit went for around by the types of unit sold. Th e most expensive to stay in areas such as Bangsar and Mont’Ki- Central City Kuala Lumpur are rented out to RM550 psf. Units in Casa Mutiara in Pudu were transaction was for a 4,155 sq ft unit, at RM6.5 ara where they get the full package of neigh- instead of owner-occupied,” he says. transacted at RM945 psf last year, achieving million. St Mary Residences located off Jalan bourhood amenities, such as shops, schools Upcoming projects in Central City Kuala a compound annual growth rate (CAGR) of P Ramlee was the second-most expensive and public transport, yet are more laid-back Lumpur include the RM 8.7 billion Bukit Bin- 6.3% for the period 2011 to 2015, he adds. project at an average transacted unit price compared with Central City Kuala Lumpur. tang City Centre development, the Tun Razak of RM1.96 million. Prices here ranged from “If a family decides to stay in Central Exchange fi nancial district with a gross devel- Strong demand RM1.4 million to RM2.9 million. City Kuala Lumpur, parents would factor in opment value (GDV) of RM40 billion in Imbi, Jeff ri notes that demand remains strong for “Pavilion Residences scores for its good amenities such as parks or developments and the Bandar Malaysia development with Bukit Bintang and Bukit Ceylon due to their location, being right in the centre of retail with big open spaces for their children. For an expected GDV of RM150 billion. vibrant immediate environment. “Living in a shops and transportation in and out of the example, the project by E & O Development, “Th e short-term and medium term [prop- high-rise residential property has become a city centre. On the other hand, St Mary Res- Dua Residency, off ers [sizeable] swimming erty] outlook is still uncertain, although prices lifestyle trend among the urban professional idences has excellent fi nishes, with most of pool for their children’s recreation which is are unlikely to pick up as fast, with many mac- community. It is supported by contributing the units coming with kitchen fi ttings, and popular among families,” she says. roeconomic factors still taking time to stabilise. factors such as stylish facilities and security also the triplex penthouses have their own Lim also observes that the drop in oil Investors are still cautious. Long-term, Central features,” he says. private pool,” Lim notes. and gas prices and other challenging mac- City Kuala Lumpur still has the upper hand in However, GMAC’s Lim notes that towards Tepian Loke Yew was the least-expen- roeconomic factors has led to a change in terms of location and will still be sought-after the end of 2015, transactions had really be- sive project by average transacted price, the tenant mix of the residential market in once things are stable again,” says Lim. FRIDAY JANUARY 15, 2016 • THEEDGE FINANCIAL DAILY MARKET WATCH | PROPERTY EP7 Go to TheEdgeProperty.com for more listings

FOR SALE [in Central KL City (excluding KLCC)] FOR RENT [in Central KL City ]

Bathroom(s): 4 Berjaya Times Square Pavilion Residences Nanas. Accessible via Jalan Raja Description: Setia Sky Residence Serviced Apartment, Type: Condominium/ Chulan, Jalan Sultan Ismail, Jalan is located on Jalan Tun Razak and Jalan Imbi serviced residence Ampang and Jalan P Ramlee and Jalan Raja Muda Abdul Aziz, 1km Type: Condominium/ Tenure: Leasehold Raja Chulan Monorail Station. from KLCC. Brand new unit with serviced residence Asking rent: RM8,000 Agent/negotiator: CK Chong 5-star facilities and unimpeded Tenure: Freehold Built-up area: 1,234 sq ft of Huttons OneWorld Real KLCC view. Magnifi cent views of Asking price: RM1,100,000 Bedroom(s): 2 Estate Group (REN 06505) Pavilion Residences KLCC. Features 40,000 sq ft Sky Deck Built-up area: 915 sq ft Bathroom(s): 2 Tel: (012) 260 6662 Type: Condominium/ with 50m lap pool, jacuzzi, deck, Bedroom(s): 2 Description: Fully furnished, serviced residence spa gardens with hot and cold tubs, Bathroom(s): 2 tastefully decorated high-fl oor The CapSquare Residences Tenure: Leasehold pavilions, barbecue area, play pool, Description: Fully furnished, unit; includes walk-in-wardrobe. Type: Condominium/ Asking price: RM2,500,000 playground, etc. En suite bathrooms high-fl oor unit in Block A. City view. One car park bay. serviced residence Built-up area: 1,234 sq ft in all rooms. Two car park bays. Agent/negotiator: Jackson Ee Agent/negotiator: Sufi nas of Tenure: Freehold Bedroom(s): 2 Close to National Heart Institute, of Ecoland Realty (REN 00328) Property Hub Sdn Bhd (REN 14449) Asking rent: RM4,000 Bathroom(s): 2 National Library, Taman Tasik Tel: (013) 776 8850 Tel: (011) 1287 1832 Built-up area: 1,805 sq ft Description: Fully furnished unit Titiwangsa and Sports Complex. Bedroom(s): 3 with pool view. Includes air- Agent/negotiator: Susie Ong of Bintang Fairlane Residences St Mary Residences Bathroom(s): 3 conditioning, master bedroom CBD Properties Sdn Bhd (PEA 1243) Type: Condominium/ Type: Condominium/ Description: Fully furnished unit with walk-in wardrobe, bathroom Tel: (016) 225 0163 serviced residence serviced residence with fi tted kitchen and teak dining with bathtub and one car park bay. Tenure: Freehold Tenure: Freehold table. Views of KLCC Twin Towers Situated on top of Pavilion Mall Asking price: RM750,000 Asking rent: RM5,500 and KL Tower. Walking distance on Jalan Bukit Bintang. Facilities: Built-up area: 506 sq ft Built-up area: 1,131 sq ft to KLCC. CapSquare off ers a mix swimming pool, playground, Bedroom(s): 1 Bedroom(s): 1 of offi ces, Manhattan-inspired mini parks, gymnasium and Bathroom(s): 1 Bathroom(s): 2 residences, a shopping centre high-end security features Description: Fully furnished Description: Located at the heart and 300-metre retail boulevard. Agent/negotiator: Gin Ting unit. Includes washing machine of the central business district with Walking distance to The Row, of Hartamas Real Estate with dryer, two air-conditioners. access to public transport, night Dang Wangi, Bukit Nanas, Medan Sdn Bhd (REN 06974) Modern kitchen design with built- spots, restaurants, prime shopping Tuanku and Masjid Jamek LRT Tel: (017) 380 3381 The CapSquare Residences in cabinet and top-end appliances, malls and offi ce towers. Off ers iconic stations. Smart home security Type: Condominium/ piped-in LPG. Walking distance views of Petronas Twin Towers, system. Facilities: swimming pool, St Mary Residences serviced residence to Lot 10, Starhill Gallery, Berjaya KL Tower and Bukit Nanas nature jacuzzi, sauna, gym, squash courts, Type: Condominium/ Tenure: Freehold Times Square, Pavilion, etc. reserve. Fitted with designer kitchen children’s indoor and outdoor serviced residence Asking price: RM995,000 Accessible via the KL Monorail appliances. Facilities: swimming pool, play areas, outdoor entertainment Tenure: Freehold Built-up area: 1,347 sq ft located around the corner. jacuzzi pavilion, clubhouse, fi tness area and barbecue area. Asking price: RM2,600,000 Bedroom(s): 2 Agent/negotiator: Michelle centre, playground, function rooms, Agent/negotiator: Daniel Built-up: 2,249 sq ft Bathroom(s): 3 Foong of Full Homes Realty Sdn 24-hour security, etc. Beautifully Chok of Chester Properties Bedroom(s): 5 Description: Nice view and interior Bhd (Bukit Jalil) (REN 10262) landscaped gardens. Schools: St Sdn Bhd (REN 04249) Bathroom(s): 6 design. Near amenities. Walking Tel: (017) 336 6138 John’s Institution and Convent Bukit Tel: (012) 298 6269 Description: Luxury penthouse distance to Dang Wangi LRT station. suite with panoramic views of A variety of restaurants nearby. KLCC and KL Tower, private Agent/negotiator: Chak Yan See of rooftop pool, designer fi ttings Reapfi elds Properties (REN 00995) and 6-star management. Near Tel: (017) 203 2689 main shopping district (KLCC, Pavilion, Lot 10, Sungei Wang and Sri Mutiara Apartment, Bukit Bintang). Walking distance Sungai Besi to MRT, KL Tower and, further Type: Condominium/ The Edge Property Sdn Bhd is an exciting and growing company under The away, Changkat Bukit Bintang. serviced residence Edge Media Group. We believe in consistently providing essential insight, Agent/negotiator Luiz Tenure: Freehold * analysis and understanding to enable and enrich our readers. We are looking Khoo of CBD Properties Asking price: RM320,000 for an enthusiastic, independent and hard working individual to join our team Sdn Bhd (REN 16967) Built-up area: 913 sq ft . Tel: (016) 553 0108 Bedroom(s): 2 Bathroom(s): 2 BUSINESS DEVELOPMENT EXECUTIVE Description: Unit in Block C, level 11. Facilities/services: JOB DESCRIPTION swimming pool, 24-hour security, • Promote and market company’s product or services card access to lifts and car park. • Develop, follow-up and maintain a good relationship with clients • Support daily operations, attend to queries and to resolve problems Located behind Wisma Mah Sing encountered by clients adjacent to Jalan Sungai Besi. • Assist with presentations, training sessions, seminar and marketing Near Sam Yoke Chinese School, activities petrol station, clinic, LRT station. Sri Kenny Agent/negotiator: Chan Tin Chai of QUALIFICATION/SKILLS Type: Condominium/ Reapfi eld Properties (REN 01222) • Must possess at least SPM qualifi cations with customer support serviced residence Tel: (019) 281 5675 experience Tenure: Freehold • Have interpersonal or people skills Asking price: RM1,650,000 Swiss Garden Residences • Good communication skills in English, Bahasa Malaysia and Chinese. Knowledge of Mandarin is an added advantage Built-up area: 2,207 sq ft Type: Condominium/ • Have initiative, self-motivated, resourceful and can work Bedroom(s): 2 serviced residence independently or in a team Bathroom(s): 3 Tenure: Freehold • Persuasive, hardworking, fl exible and presentable Description: Spacious mid- Asking price: RM1,050,000 • Computer literate and know how to use Microsoft Offi ce applications fl oor unit with view of pool Built-up: 750 sq ft and greenery; sprawling Bedroom(s): 2 Other requirements master bedroom with his and Bathroom(s): 2 • Able to work overtime or on weekends/public holidays her walk-in closets; chestnut Description: Fully furnished, • Preferable if the candidate can start immediately coloured marble master mid-fl oor unit in good • Willing to travel, possess own transportation and holder of a valid bathroom with a standalone condition. Estimated rent: driving licence shower and bathtub; large RM4,000. Prime location. Salary will commensurate with experience and last drawn salary (if kitchen; and one car park bay. Agent/negotiator: CJ Chai of applicable) to be stated in resumé. Agent/negotiator: LK Ong of Susan Realty (REN 09011) Reapfi eld Properties (REN 01743) Tel: (010) 226 5730 Please send in your resumé to: Tel: (012) 361 2867 The Manager Human Resource Department Setia Sky Residences ‘Lower Level 3 Menara KLK, No 1 Jalan PJU 7/6 Type: Condominium/ Mutiara Damansara, 47810 Petaling Jaya serviced residence returns Email : [email protected] Tenure: Freehold to be the Fax : 603-7721 8008 Asking price: RM1,450,000 Built-up area: 1,701 sq ft norm’ Only shortlisted candidates will be notifi ed Bedroom(s): 3 + 1 Page 8 FRIDAY JANUARY 15, 2016 • THEEDGE FINANCIAL DAILY EP8 PROPERTY | FEATURE ‘Lower returns to be the norm’

Knight Frank’s forecast of prime residential markets in 2016, with tips on how to surf the low waves

BY EWE SHUFEI 0.25% US rate rise, strengthening dollar and Annual prime city residential price growth, forecast second homes, dissuading foreign buyers), declining prices will contribute to a new “political risk” around the mayoral election roperty consultant Knight wave of capital fl ows from emerging markets 2016 FORECAST (%) 2015 ESTIMATE (%) in May, and ongoing aff ordability concerns Frank’s Prime Cities Forecast to “fi rst-tier luxury residential markets” in Sydney 10.0 15.0 as reasons for its “muted forecast”. Report for this year analysed search of a safe haven. Knight Frank says Monaco, already a favourite with the Monaco 5.0 5.0 the performance of the property these outfl ows will likely not be signifi cant, globally wealthy 1%, is expected to at- market in 10 prime cities: Lon- because an expanding new supply of luxu- New York 5.0 5.0 tract more investment amidst a climate of don, New York, Paris, Monaco, ry homes (such as in Hong Kong, London, Shanghai 4.0 10.0 “heightened political tension and ongoing PGeneva, Hong Kong, Singapore, Sydney, New York and Miami) makes steep price Miami 2.0 4.0 tax fl uctuations”. Knight Frank forecasts a Shanghai and Miami. appreciation less likely to take place than London 2.0 1.0 steady price growth of 5% in 2016 as demand On average, prime prices across all 10 in the post-Lehman years. Geneva 0.0 -3.0 and sales activity pick up, encouraged in cities are expected to have grown by ap- Of the 10 cities analysed in the forecast, Paris -3.0 -5.0 part by the severely constrained supply on proximately 3% in 2015 but will slip to 1.7% Hong Kong, Singapore and Paris are ex- the two-mile wide principality. Singapore -3.3 -3.5 this year. Knight Frank expects such lower pected to see prime prices decline. Hong New York’s luxury market predictably returns to become the norm in the short to Kong (-5%) is forecast to replace Singapore Hong Kong -5.0 1.5 slowed from the surge of 2013 and 2014 due medium term. (-3.3%) as the weakest-performing luxury Source: Knight Frank Research, Douglas Elliman/Miller Samuel to the strength of US dollar and weaker glob- It says two major factors will “determine residential market in 2016 because of new al economic conditions last year. However, the performance of property markets across supply coupled with a strengthening HK ence of terrorism, will most likely see some the slowdown is not expected to be refl ect- developed and emerging markets alike dollar (pegged to the US greenback). buyers delay investments after the latest at- ed in price trends until 2017. In any event, over the next 12 to 18 months”: the extent Singapore’s prime prices are expected tacks. However, as the French presidential buyers will adopt a wait-and-see approach of the slowdown in China’s economy, and to decline at least until the end of the year, election is due in less than 18 months, the until after the US federal and presidential how well the US Federal Reserve manages following its government’s stated inten- property tax structure for foreign buyers elections in November this year. its interest rate rises. tion to continue property market cooling is expected to remain the same, and the Sydney is the runaway winner of the Th e US Fed’s recent rate rise and geopo- measures. Because the drop in prices has city’s prime property market should remain forecast. Price growth is expected to slow litical tension are identifi ed as the highest presented pockets of investment opportu- competitively priced relative to the others from rabidly bullish 15% year-on-year in risks to property values in the cities sur- nities, Knight Frank expects sales volumes surveyed here. 2015 to a relatively less rampant 10% in veyed. to increase this year. Price declines in this To its north, rival London’s prime real 2016. Australia’s economy, so dependent For most cities, low income growth and a sector should also be less pronounced than estate market is expected to grow from 1% on China’s unsustainable industrial activ- slowing domestic economy are considered for the overall Singapore market due to the in 2015 to 2% in 2016. Knight Frank cites ity, and the government’s introduction of the lowest risks to luxury markets. reducing inventory of high-end homes. higher transaction costs (a 3% increase in foreign investment fees point to the lower Th e forecast also considers whether the Paris, which has long historical experi- stamp duty for buy-to-let properties and fi gure for 2016.

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