TEP 2 FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY NEWS HIGHLIGHTS from www.EdgeProp.my

LBS Bina to buy M3 The Datai Langkawi Mall for RM105 mil Government looking closes for restoration at expediting MRT3 The Edge Property Property developer LBS Bina Group The Datai Langkawi forest and Malaysia Bhd announced that it will be buying construction beach resort has closed its doors Gerbang Mekar Sdn Bhd, the mall The Malaysian government may for a 10-month restoration project, owner and operator of the M3 Mall in expedite construction of the Mass said its operator in a statement. Gombak, Selangor, for which it will be Rapid Transit 3 (MRT3) in the Klang This is the property’s most sig- paying RM105 million. This will mark Valley ahead of its planned comple- nifi cant overhaul since opening its its entry into the retail business. tion in 2027 to reap the economic doors in 1993 and will entail build- The M3 Mall in Gombak, which benefi ts of the project. ing new components besides re- was fully developed in the third quar- “We have planned to complete freshing existing facilities. ter of last year, has a market value of MRT2 in 2024 and MRT3 in 2027, but Minister Datuk Seri Liow Tiong Lai. The resort’s guestrooms, suites Publisher and Group CEO RM107 million, said LBS Bina. looking at the benefi ts that we can Liow was speaking to reporters and villas will undergo renovations; Ho Kay Tat Constructed on a 3.2-acre lease- reap from the MRT projects, the min- on the sidelines of the Sustainable the retail space will be refreshed hold site, M3 Mall is part of a mixed istry has proposed to see whether we Urban Transport Summit on Sept 5. while the overall landscaping will development known as Medan Mega can bring forward the completion “We will leave the details to the be enhanced. Melati, which also includes the M3 of MRT3 from 2027. We can start Economic Planning Unit, Land Pub- In addition, a nature centre, extra Residency, comprising two blocks of planning now, because the imple- lic Transport Commission and the spa pavilions and fi tness centre by 16-storey serviced apartments built mentation will take fi ve years. It’s al- Prime Minister’s Offi ce. We have to the beach will be constructed. The Edge Property Sdn Bhd (1091814-P) atop the mall. The mall has a gross ready 2017 and we don’t need to wait work with the different agencies,” Themed Attractions Resorts & Level 3, Menara KLK, No 1 Jalan floor area and net lettable area of another 10 years,” said Transport he said. Hotels Sdn Bhd, the investment PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya, Selangor, Malaysia 587,572 sq ft and 182,609 sq ft, respec- holdings company that manages tively. It is currently 83% tenanted. The Datai Langkawi, declined to Th eEdgeProperty.com Retail sales growth in the fi rst six Yong @ Eusoffe Chua as its CEO disclose the cost of the property’s Managing Director/Editor-in-Chief Retailers record months was 2.5%, buoyed by improved eff ective Sept 5. makeover and new facilities. Au Foong Yee healthier sales in performance in all retail sub-sectors The CEO post was left vacant for Taking charge of the makeover in 2Q2017. Five out of the six sub-sec- more than a year. Chua is replac- is interior designer Didier Lefort, EDITORIAL 2Q2017 tors, which saw sales shrink in 1Q2017, ing Teo Juhn How, who resigned who was also part of the original Editor Lam Jian Wyn Contributing Editor Sharon Kam Malaysian retailers posted sales did better in the April-June period. on June 8, 2016 to pursue other Kerry Hill Architects team who fi rst Deputy Chief Copy Editor growth of 4.9% in 2Q2017, an im- The department store category professional interests. worked on The Datai Langkawi. James Chong provement over 1Q2017 when overall improved to 15.1% compared with In a fi ling with Bursa Malaysia, Copy Editor Geraldine Tan retail sales contracted by 1.2%. the 0.1% contraction in the Janu- Tower REIT said Chua, 39, was pre- Senior Writer Tan Ai Leng “After a dismal performance in ary-March period. The department viously TA Global’s head of group Writers Rachel Chew, Natalie Khoo, the fi rst three months, the retail in- store-cum-supermarket improved to sales and marketing as well as Shawn Ng, Lum Ka Kay dustry managed to recover slight- 4.1%, supermarket and hypermarket head of group leasing and property Art Director Sharon Khoh Design Team ly during the second quarter,” said posted a 0.8% growth, fashion and management. Nik Edra, Rajita Sivan Retail Group Malaysia managing fashion accessories rose 2.5%, and Before that, he worked for director Tan Hai Hsin in the latest other specialty stores grew 6.3%. The Skateline Malaysia Sdn Bhd from For New Launches/Events/ Press Releases/News Tips Malaysia Retail Industry Report (Au- pharmacy and personal care category 2005 to 2007 as managing direc- email: [email protected] gust 2017) released on Sept 5. continued its positive growth trend in tor and took on a regional role as Tel: 03-7721 8211 Fax: 03-7721 8280 He attributed the better per- 2Q2017, clocking in a 7.9% increase. Skateline Pte Ltd’s managing di- Email: [email protected] formance to the Hari Raya festive rector overseeing Skateline’s oper- ADVERTISING & MARKETING shopping, which helped boost sales Tower REIT appoints ations in Malaysia and Singapore, Associate Account Director, in May, coupled with heavy price said Tower REIT. Advertising & Marketing discounts off ered by retailers. Eusoff e Chua as its CEO Heidee Ahmad (019) 388 1880 Tower Real Estate Investment Trust Senior Account Managers How do I get past issues of this weekly pullout? Cecilia Too (012) 319 7666 (REIT) has appointed Chua Song Ian Leong (012) 359 1668 Go to www.EdgeProp.my Account Manager trending Jeff rey Yeoh (016) 217 9227 to download for free Marketing Support & Ad Traffi c now Madeline Tan (03) 7721 8218 email: [email protected] Email : [email protected] If you have any real estate-related events, email us at [email protected]. NEGOTIATOR ADVISORY SERVICE LAUNCHES + EVENTS Events listed here will also appear on www.EdgeProp.my. Senior Manager Elizabeth Lay Senior Associate Stannly Tan Associate Karen Wong Solaris Dutamas, Kuala Lumpur IJM Land invites all to its fi rst Bertam Properties’ property For enquiries and listings Contact: (03) 2718 7788 Lightival, a grand annual roadshow email: [email protected] GL: (03) 7721 8175/ 8172 Don your kimonos and yukatas celebration of exclusive living Date: Sept 7 to 10 (Thurs to Sun) Email: [email protected] and join UEM Sunrise Bhd at featuring some of The Light Time: 10am to 10pm Publika for the Sama-Sama Waterfront Penang’s most Venue: Gurney Plaza, Persiaran TheEdgeProperty.com pullout is Bon Odori summer festival. exciting and latest off erings. Gurney, George Town, Penang published by The Edge Property Sdn Bhd. It is available with The Edge Visitors will have the chance The developer will be off ering Contact: (04) 222 8111 Financial Daily every Friday. The to experience both Japanese a range of promotions and Bertam Properties Sdn Bhd’s pullout is also distributed at more and Malaysian cultures at the packages exclusive for buyers latest housing developments are than 200 offi ces, shopping complexes, Eco Forest show village grand condos, medical centres, F&B outlets food bazaar, the traditional during this two-day event. being showcased at Gurney Plaza. and LRT stations in the Klang Valley. opening Yosakoi Soran dance, Bon The developer is one of the main You can also download it for free at Date: Sept 9 (Sat) Odori dance and Malaysia’s Confl uential: An artistic property players in Northern www.EdgeProp.my Time: 10am traditional dances such as tribute to Merdeka and Seberang Perai, which is mainly Venue: EcoWorld Gallery @ Eco Zapin, Joget, Bhangra as well Malaysia Day focused on township development. Forest 1, Lingkaran Eco Forest 1, as the 1Malaysia dance. Date: Sept 9 to 18 (Sat to Mon) Eco Forest, Beranang, Selangor Time: 10am to 5pm OSK Property’s Crab- Contact: (03) 8723 2255 IJM Land’s Lightival Venue: 8 Conlay, 8, Jalan tivating feast Th e Edge Malaysia EcoWorld invites all to join the Date: Sept 9 and 10 (Sat and Sun) Conlay, Kuala Lumpur. Date: Sept 9 and 10 (Sat and Sun) EDITORIAL grand opening of its Eco Forest Time: 11am to 8pm Contact: (03) 2181 0788 Time: 11am to 6pm Editor-in-Chief Azam Aris show village this weekend. Eco Venue: The Atrium, Level 1, In conjunction with this year’s Venue: Windmill Upon CORPORATE Forest is the latest township Udini Square, Lebuh Tunku National Day and Malaysia Hills Sales Gallery, B-P7 & Chief Operating Offi cer Lim Shiew Yuin project by EcoWorld located Kudin 3, Gelugor, Penang Day celebrations, KSK Land B-P8, Jalan Permai Genting, ADVERTISING & MARKETING Chief Commercial Offi cer nearby Broga Hill, Semenyih. Contact: (04) 296 1333 and Art WeMe Contemporary Genting Highlands, Pahang Sharon Teh (012) 313 9056 The developer will be showcasing Gallery are presenting Contact: (03) 2161 3322 General Manager its modern double-storey an international artwork OSK Property Holdings Bhd Kingston Low (012) 278 5540 Senior Sales Managers garden home show units. showcase “Confl uential”, invites all to visit Windmill Upon Fong Lai Kuan (012) 386 2831 starting from this weekend. Hills sales gallery and join in a Gregory Thu (012) 376 0614 Sama-Sama Bon Odori by UEM The free admission event will free savoury crab feast. RSVP is Kamalesan Parama (012) 394 4855 Sunrise Michael Tan (012) 213 0252 feature local and international recommended. At the same time, Creative Marketing Date: Sept 10 (Sun) artworks that collectively touch one can check out the freehold Chris Wong (016) 687 6577 Time: 5pm to 9.30pm on the power of confl uence, 5.5-acre serviced apartment Head of Marketing Support & Ad Traffi c Venue: The Square, Publika, confi dence and infl uence. project in Genting Highlands. Lorraine Chan (03) 7721 8001 Email: [email protected]

TEP 4 FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY NEWS Technology and innovation to drive future cities

LOW YEN YEING | TheEdgeProperty.com Mobilising Innovation BY TAN AI LENG & NATALIE KHOO Developing Change

PETALING JAYA: Th e concept of building a smart city is not about constructing a new city from scratch but how to improve the daily lives of city dwellers through technology, in- novative ideas and sustainable design. And to achieve that would involve the participation of both the private and public sectors. This was a key takeaway from the Fu- ture Forward Forum 2017 held yesterday. Th emed “Trends: Insite”, the forum was or- ganised by Rehda Youth, the youth division of the Real Estate and Housing Developers’ Association Malaysia, in partnership with Nippon Paint Malaysia. Th eEdgeProperty. com was the offi cial media partner of Future YOUTH Forward Forum. (From left) Pimbley, Au, Ho, Rehda Youth committee member Ethan Lai, Lee, Fong, Patai, Tan, Hu, Nippon Over 170 participants from the building Paint (M) Sdn Bhd senior manager Wong Meng Lee and Future Forward Forum organising committee Alex and construction, green technology and Chew at the forum. property development industries attend- ed the forum, which featured six speakers The speakers in the first session were reduce cost and dependence on labour as of distinct specialisations who took part in Hong Kong-based Ho & Partners Architects well as shorten building time. active discussions on topics related to sus- Engineers & Development Consultants Ltd “Research also showed that the imple- tainability in master plan design, building deputy managing director Nicholas Ho, IKEA mentation of DFMA could reduce the build- and practices as well as the usage of big data Southeast Asia (Singapore) head of sustain- ing of double concrete wall and ceiling, and and technology in building smart cities. ability Dr Lee Hui Mien and SPARK Archi- overall construction time could shorten In her welcome remarks, Rehda Youth tects (Singapore) director Stephen Pimbley. about 30%,” he added. chairperson Carrie Fong noted that the fo- Th e speakers for the second session were IKEA Southeast Asia’s Lee then shared rum could be a platform for industry play- Builk Asia Co Ltd (Th ailand) principal and the ways in which the company incorporates views on sustainability in city planning and ers to exchange ideas, discover hidden op- CEO Patai Padungtin; Shanghai Distrii Tech- sustainability into its development process. architecture design. Th e session was mod- portunities and broaden their knowledge nology Development Co Ltd (China) founder She pointed out that sustainability in the erated by Th eEdgeProperty.com managing as well as help them inject new ideas into and CEO Dr Hu Jing; and Panasonic Malaysia retail business starts from product design as director and editor-in-chief Au Foong Yee. their businesses. strategic B2B development general manager a well-designed long-lasting product could Forum participants were also invited to “Th e theme of Future Forward Forum this Tan Chee Hon. help individuals have a better lifestyle by join in interactive online polls on current year, ‘Trends: Insite’, is a wordplay of what we In his session “How SMART can you AF- improving their living environment. issues such as China’s “One Belt One Road”. have seen (insight) and what we could imple- FORD to be?”, Ho from Ho & Partners shared Meanwhile, in his session titled “Con- To provide a visual summary of each session, ment in our businesses (on site),” she said. his views on how smart design in the con- nected Architecture”, Pimbley from SPARK the organiser had also invited sketch post Th e one-day forum was divided into two struction process could also be aff ordable touched on the importance of incorporating artist Chan Wai from Scribbilicious to visual- sessions, with the fi rst titled “Future-Planning: and accessible to most people. cultural elements in architectural design. ise the essence of every session through his Emerging Trends in Sustainable Projects” He said Design For Manufacturing and Th e fi rst session speakers — Ho, Lee and sketches. Home-grown cafe operator Th e while the second was titled “Digital Disrup- Assembly (DFMA) will be the future trend Pimbley — also participated in a panel dis- Whisk was also on hand to serve partici- tion: Programming the Property Industry”. in the construction sector as it could help cussion where they shared more of their pants with fresh brewed coff ee. Andira Park to launch phase 2 mid-Sept following strong sales for phase 1

LOW YEN YEING | TheEdgeProperty.com BY RACHEL CHEW with similar built-up areas as those in phase 1. Th ere will also be fi ve PUCHONG: Hot on the heels of its premier 3-storey terraced homes very successful Andira Park phase with built-up areas starting from 1 launch, TAHPS Group Bhd is 2,347 sq ft. Th e selling price starts launching phase 2 on Sept 16 and 17. from RM668,000. Located on an 8.33-acre free- “Th e feedback we received from hold site at the developer’s town- purchasers for phase 1 was over- ship in Bukit Puchong, the gat- whelming as seen from the sales ed-and-guarded landed residential transacted. development has a gross develop- “Some of the purchasers were ment value of some RM100 million. not able to secure a unit in phase Phase 1, which was launched 1; we have a long list of purchasers on Aug 19 and comprises 38 2- who have registered their interest storey and 38 3-storey link villas, for phase 2,” said TAHPS Group recorded full take-up the very CEO Eugene Khoo. next day. Interested buyers had “Given the feedback from pur- queued up at the sales gallery for chasers on phase 1, we expect the launch since 2am on the day phase 2 to be a success as well. of the launch. When we launched phase 1 two Built-ups for the 2- and 3-storey weeks ago, our purchasers start- Khoo: The feedback we received from link villas in phase 1 are 1,583 sq ed queuing up from 2am,” he told purchasers for phase 1 was overwhelming ft and 1,789 sq ft, respectively. Th e Th eEdgeProperty.com. as seen from the sales transacted. selling price starts from RM686,000. He added that site-clearing for The upcoming Andira Park the project has commenced and phase 2 launch will consist of 64 the entire project is expected to be units of 2- and 3-storey link villas completed by August 2019. Artist’s impression of Andira Park. FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY TEP 5 NEWS

BY LUM KA KAY

SEMENYIH: Cementing its foothold in Eco Forest’s maiden terraced the growing Semenyih corridor, south of the Klang Valley, Eco World Development Group Bhd (EcoWorld) will be having the fi rst property launch at its latest township homes launch by year end development Eco Forest by end-2017. Th e show village will offi cially open tomorrow. SHAHRIN YAHYA | THE EDGE MALAYSIA Th e 515-acre freehold development is lo- Th e developer has been having private Forest will introduce new and unique elements cated less than 1km away from the picturesque previews of the homes for its existing cus- to the township including the landscaping of Broga Hill and has a gross development value tomers and has received positive feedback. its environment and the design of its homes. (GDV) of RM3.5 billion, according to EcoW- “Our location here in the Broga corridor “As one drives into Eco Forest, one will orld divisional general manager Evon Yap. has attracted a lot of locals living in this area be greeted by a tree trunk-inspired latticed Eco Forest will kick off its launch at the who would love to upgrade their homes but entryway, followed by rows of arching bam- Ebonylane precinct targeting Semenyih lo- remain in Broga,” said Yap. boos that will screen off the sun, ushering cals and young homebuyers. Th e precinct In a run-up to the launch, EcoWorld, in you into the township. will be launched over phases, with the fi rst partnership with Cartoon Network, organ- “Eco Forest’s tagline ‘Canopy of Artistry’ tells phase comprising about 300 homes. ised the We Bare Bears 1001 Expo (ended everyone the concept of this township, which There are 685 double-storey terraced on Sept 3), which has attracted many to visit is inspired by the four layers of the forest — the homes in the Ebonylane precinct made up the EcoWorld gallery at Eco Forest. Th e expo undergrowth, understory, canopy and emer- of two types of homes — Artisan homes and featured over a thousand models and infl at- gent layer,” Yap told Th eEdgeProperty.com. Garden homes, which will feature a unique ables of the famous bears from the popular At the heart of the Central Park will be a A-frame design. animated series. giant Woven Tent, which will serve as the “It took us about six months to study the “Th e expo had caught the attention of pavilion for residents and their friends to A-frame design of the homes to make sure those living in Kajang, Sungai Long and gather. it not only looks good but is also practical. Cheras to visit our township,” said Yap. “Th ere will also be a Chirpy Tree where a Yap: Our location here in the Broga corridor has Each home will have its own linear garden. To be developed over eight to 10 years, hundred goldfi nches will stand and rotate attracted a lot of locals living in this area. Prices will start from RM600,000,” said Yap. the township will comprise over 1,800 land- when the wind blows. On top of that, we Artisan homes will come in three sizes — ed-strata homes, 3,500 apartment units and have our Forest Dragons, which are moni- Semenyih bears a lot of potential. Th e pop- 20 ft by 65 ft, 20 ft by 70 ft and 22 ft by 70 ft — over 200 commercial units. tor lizard-inspired pebble-glass sculptures. ulation growth in Hulu Langat is about 9% while the Garden homes are all 30 ft by 62 ft. Anchored by a 25-acre Central Park, Eco Monitor lizards are common in our forest per annum; in the next few years, the popu- and signify survival, fl exibility and nature. lation in this district will reach one million,” ECOWORLD Th ey are like the guardians of Eco Forest. Yap noted, adding that the area is supported “Th e Central Park will be completed by by the popular natural attraction Broga Hill end-2018. As it is a catalyst for the entire and Nottingham University Malaysia, which township, we would like to see the trees is already more than 10 years old. grown enough to provide shade for residents According to Yap, EcoWorld’s fi rst township when the fi rst homes are handed over,” said in Semenyih, the 1,089-acre Eco Majestic with Yap, who added that more than 10% of the a GDV of RM11.15 billion, has attracted buy- township will be made up of blue belts and ers in areas neighbouring Semenyih such as green lungs. Th e Central Park is placed right Kajang and Cheras. in the middle of the township, surrounded by “But we realise there are many locals in the homes which are linked by a cycling path. Broga who are looking to upgrade their homes Yap said the growing population in the Hulu as well,” said Yap. Langat district off ers strong development po- Eco Forest is about 45 minutes’ drive to tential for the Semenyih area. Kuala Lumpur city centre. It is accessible via “I would say Cheras is very mature and the Cheras-Kajang Highway, South Klang Val- saturated already while Kajang doesn’t have ley Expressway through SILK Highway and Anchored by a 25-acre Central Park, Eco Forest will introduce new and unique elements to the township. much land left for such a huge township, so Kajang-Seremban Highway. CK East plans boutique residences in Kayu Ara

LOW YEN YEING | TheEdgeProperty.com BY TAN AI LENG

PETALING JAYA: CK East Group plans to launch a low-rise residential development in Kampung Kayu Ara, Petaling Jaya, some- time during mid-2018. CK East managing director Ng Chong Kiat told Th eEdgeProperty.com that the 5-storey development, which carries an estimated gross development value (GDV) of RM60 mil- lion, will comprise 67 units of low-rise apart- ments and “villas” on top of the apartments. Th e development will feature single- and double-storey villas, he added. Th e single- storey ones will be built on the fi fth fl oor, Tan (left) and Ng anticipate while the double-storey type will be built the demand for business on the ground fl oor. However, all the villas suites, such as the ones in will come with a private swimming pool. Rencana Royale (depicted “Th e development will be built on a 38,000 in this scale model), will sq ft leasehold tract near Centrepoint Ban- continue to grow. dar Utama,” Ng said. Initial plans are for 18 villas that will fea- ed on the name for this project,” Ng said. lots and corporate suites, as well as two fa- location as it is easily accessible via Pencha- ture a private lap pool in each unit and the CK East is also the project manager cility fl oors for business and leisure. la Link about 2km away from Taman Tun Dr rest will be apartment units of varied layouts for Rencana Royale (previously called CK East director Tan Aik Huat said Block A, Ismail (TTDI) and 12km from KL city centre. and sizes. Th e apartment residents will share Rencana TTDI), developed by Minda Muhibah which was launched in 2014, has seen 90% of Slated to be completed by 2020, the av- a common swimming pool. Sdn Bhd in Kampung Sungai Penchala, KL. the 310 business suites being taken up while erage selling price is RM650 psf with the Meanwhile, CK East is targeting to launch Rencana Royale is a 2-acre commercial Block B, which was unveiled in February 2015, minimum selling price at RM280,000. Th e a 29-unit double-storey terraced house pro- development on Malay reserve land and has has seen 60% of the 317 units sold. built-ups range from 472 sq ft to 5,000 sq ft ject in Taman Melati, Kuala Lumpur, by the a GDV of RM380 million. It comprises two “We have a wide range of buyers from for the duplex and corporate suites. fourth quarter of this year. towers of 627 Smart-offi ce Flexible-offi ce their early twenties to senior citizens who “Prices have increased over the years. “This freehold project has a GDV of units with choices of executive suites, du- bought for their children for business or for Th e average selling price was around RM600 RM22 million with an indicative selling plex executive suites, deluxe suites, duplex rental investment,” he added. psf back in 2014 with the minimum selling price from RM700,000. We haven’t decid- deluxe suites, 2-storey garden suites, retail Ng noted that the project is in a strategic price from RM250,000,” said Ng. TEP 6 FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY ROUNDTABLE ON THEEDGEPROPERTY.COM-LAFARGE HAPPINESS IN THE CITY INDEX 2017

PICTURES BY LOW YEN YEING | TheEdgeProperty.com

(From left) Fong, Ezumi, Legrand, Liew, Benson, Au and Ihsan.

Keys to a happy city According to the survey, 77% of respondents How to be ranked safety as the second-biggest concern af- ter the cost of living. Th e panellists agreed that a feeling of insecurity over crime and other safety issues has caused a lack of trust among people — even among those happy in the city living within the same building. “I think the level of trust even among neigh- bours is low, which is why security is such a big BY RACHEL CHEW, NATALIE KHOO & SHAWN NG issue and gated-and-guarded communities are becoming more and more popular,” said Liew. However, Th ink City’s Benson believes gat- ome people say small-town folks are as 77% of respondents there said they were very ed-and-guarded communities are actually segre- often happier than city folks. It may happy and happy. gating people and discouraging them from inter- not be so throughout the world but Pondering on the results of the index, panellists acting with others beyond their own community. TheEdgeProperty.com-Lafarge Hap- at a roundtable on Th eEdgeProperty.com-Lafarge He also mentioned that a place needs diversity and piness in the City Index 2017 showed Happiness in the City Index 2017 held on Aug 21 vibrancy, which could indirectly reduce crime. that this could be true in Malaysia. endeavoured to fi rst fi nd out the root of the unhappi- “Jane Jacobs once said: ‘Th e safest street is the SThe survey was conducted over a period of ness among Klang Valley folks and then proceeded to busiest street’. Th e many eyes on the street and the one month from April 28 to May 28 to find out share their thoughts on the attributes of a happy city. ownership of the street among its users are what how happy Malaysian city dwellers are and what Moderated by Th eEdgeProperty.com manag- make a safe street. People usually don’t commit could be done to make their living quality better. ing director and editor-in-chief Au Foong Yee, crimes in their own neighbourhood,” he off ered. The online survey — which focused on the Klang the participants of the roundtable were Lafarge Benson also pointed out that living in a small- Valley, Johor Bahru and Penang — garnered a Malaysia president and CEO Th ierry Legrand, er city might be less stressful and makes its res- total of 1,796 respondents. Th ink City urban solutions programme director idents happier. Th e survey showed that only 50% of city folks Dr Matt Benson, Rehda Youth chairperson Carrie “Just like Penang — the survey showed that are happy living in their cities. Th e question is, how Fong, Malaysian Institute of Planners (MIP) presi- only 3% of Penang folks were unhappy and very do we add a bit more happiness among the other dent Ihsan Zainal Mokhtar, Malaysian Institute of unhappy. It is probably because Penang is smaller, half, of whom 43% found life in the city tolerable Architects (PAM) president Ezumi Ismail and and so it brings people closer together. It is pos- while the rest felt unhappy and very unhappy. Eco World Development Group Bhd executive sibly a big part of the reason that Penangites are Penang, however, stood out as the happiest place director Liew Tian Xiong. happier,” he noted. FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY TEP 7 ROUNDTABLE ON THEEDGEPROPERTY.COM-LAFARGE HAPPINESS IN THE CITY INDEX 2017

The biggest concerns The city in a decade ... Happiness level in... about the city KLANG VALLEY KLANG VALLEY KLANG VALLEY

Air pollution 65% More densely populated 85% Very happy 10%

Noise pollution 31% Larger urban sprawl 82% Happy 29% Safety 83% More beautiful 22% Tolerable 49% Accessibility 18% Greener 18% Unhappy 9% Job opportunities 15% Safer 8%

Cost of living 83% Higher cost of living 95% Very unhappy 3%

PENANG PENANG PENANG

Air pollution 50% More densely populated 95% Very happy 47%

Noise pollution 33% Larger urban sprawl 78% Happy 30% Safety 52% More beautiful 56% Tolerable 21% Accessibility 41% Greener 47% Unhappy 1% Job opportunities 38% Safer 28%

Cost of living 78% Higher cost of living 89% Very unhappy 2%

JOHOR BAHRU JOHOR BAHRU JOHOR BAHRU

Air pollution 46% More densely populated 80% Very happy 24%

Noise pollution 20% Larger urban sprawl 85% Happy 37% Safety 78% More beautiful 53% Tolerable 36% Accessibility 27% Greener 41% Unhappy 3% Job opportunities 40% Safer 31%

Cost of living 85% Higher cost of living 88% Very unhappy 0%

0 204060801000 204060801000 20406080100

Note: Percentages do not add up to 100% due to the fact that participants were allowed to choose more than one answer for the question.

But, Legrand asked, whose job is it to build However, he believes that normal house prices Very happy Happiness in happy cities? should be left to market forces while the govern- Happy “Is it the planner’s job? Is it the government’s ment takes care of public housing. Tolerable the city job? I think it is the people’s job to think. You know, A city can also be more liveable when its resi- Unhappy (overall results) as a company, we could have stayed with our past dents fi nd it easy to walk or cycle from one place Very unhappy goals, which is producing cement and concrete, to another. “We have too many cars and carbon but we would like to help build better cities. Yes, [in the city]. Walking and cycling are something we are still producing cement and concrete, but we we can look at. However, it has to be connected are encouraging people to have ideas and letting to the safety aspect,” said Ihsan. them know that they have a small part to play in a bigger role. It’s everybody’s job,” he expressed. A sense of belonging 18% 7% What would you do if you were the mayor? Many Liveability of the panellists said they want to retain the iden- Besides safety, MIP’s Ihsan pointed out that a city tity of the city and make the environment safer also needs to be liveable. Currently in Kuala Lum- and more pleasant. pur city, the city centre is more of a commercial “When you talk about top cities in the world, hub where people work and do business. How- you remember straightaway their character that ever, many cannot aff ord to live in the city centre. you enjoyed. We need to maintain and keep that 30% “A very limited number of people can aff ord character in our cities, not hide them,” said Re- homes in the city. But what happened in Mel- hda Youth’s Fong, citing Eiff el Tower in Paris as bourne? It is the world’s most liveable city but it example where no development is allowed around 43% started with a lot of problems, such as an oversup- the city’s landmark so that the iconic skyline and ply of offi ce space in the city, but they converted identity can be mantained. them into apartments and attracted people to live Th e panellists agreed that a city with its own in them. Th at’s something we should learn from character can evoke a sense of belonging and Melbourne,” Ihsan noted. identity for its citizens. Benson also felt that Malaysian houses are “I think a sense of belonging is vital as having 3% overpriced and unaff ordable to many. In response, ownership on where you live is important. Ma- Ezumi raised the issue of hidden costs in property laysians like to adapt and follow [foreign] culture, development such as the cost of doing business, but rather than doing that, we should embrace cost of building infrastructure and subsidies for our own culture and practise it,” off ered Liew. aff ordable housing schemes. CONTINUES NEXT PAGE TEP 8 FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY ROUNDTABLE ON THEEDGEPROPERTY.COM-LAFARGE HAPPINESS IN THE CITY INDEX 2017

FROM PREVIOUS PAGE Th ink City urban solutions pro- ways for pedestrians in the city. gramme director Dr Matt Ben- In KL, sometimes you have to take son: Happiness in the cities can Are you happy? your car and go the long way to be measured by happiness indices get to a place, even though it is such as Th eEdgeProperty.com-La- just within walking distance, be- farge Happiness in the City Index Th eEdgeProperty.com editor-in-chief Au Foong Yee: Being happy is cause there is no other way for 2017 as they can give some indica- very important. Otherwise, what is life all about? you to get there. Hence, I think it tion of people’s feelings. is the way we do the connection. I think, for myself, happiness So, my question is — are you happy? is about how many people you Ihsan: You are right — it is called know. It is about your network barriers. We need to create a bar- and support system. Th at is what environment to feel more secure. were more job opportunities in happiness is about getting to know rier-free city; give KL a chance really defi nes an individual’s hap- Th is, however, actually breaks up the city. Since then, I have been new friends and feeling safe and of being barrier-free and get the piness. Obviously, money counts. the neighbourhood. People lose living in KL, so I cannot imagine comfortable in the city. community more involved. We A trustworthy government counts. interaction within their community. living outside the city but I can are doing it now; we are slowly But a big proportion of happiness, Th e other thing I observe is that imagine living in diff erent cities. Au: That’s a good point about picking up. Compared to 10 to 15 particularly in the city, lies in your everything has started to become Th e city is going to have a great- people putting up fences be- years ago, there is now more par- social network — which includes pricey in the city, but in the “kam- er infl ux of population. Th e World cause it is inevitable due to se- ticipation in urban design in the your immediate family, as loneli- pung”, everything is priceless as peo- Economic Forum has estimated curity reasons. In fact, 77% of re- city. It is still quite new for us. ness is not something that is going ple share hope together — and you that there will be another 2.5 mil- spondents in our survey ranked Consider the recent incident in to make you happy. Social direc- can’t buy that kind of relationship. lion people coming into the city. safety as the second-biggest Taman Tun Dr Ismail [in KL] where tion, social capital and support As the city has a life of its own and concern after the cost of living. the people are not happy with the network — those are some of the Legrand: I think the way condos, needs to constantly grow and adapt, proposed public housing coming things that make a person happy. districts or towns are built will de- we need to fi nd ways to ensure that Fong: When you segregate peo- up on green space. At least now we termine whether or not it is easy for despite development growth, peo- ple within gated communities, it is have the avenue to question the Eco World Development Group people to connect with each other. ple are not left behind. You can see kind of like schools, right? Like you government. It is something impos- Bhd executive director Liew You have condos that are built in in some countries — for instance, belong to this school while I be- sible 10 years back as people would Tian Xiong: If you ask me if I’m such a way that there is no way you in China — where the development long to that school, but the schools not have questioned [such a pro- living happily in KL, the answer will meet your neighbours. But we is going at such a rapid pace that don’t really mix. So imagine we posed development] at that time. is yes. I studied in Melbourne and also have some places where it is some are worried whether or not have inter-township games — let’s upon graduating, I came back to easier to connect with each other. the people can keep up with it. say, a swimming gala to get people Ezumi: To have a barrier-free city, Malaysia. to mix with each other. we need to fi rst tackle the crime I enjoy living in the Klang Val- Benson: I come from Perth and MIP president Ihsan Zainal rate. I have observed that in Pu- ley, but I don’t enjoy going into have lived in Melbourne for a Mokhtar: I’m happy to be here Ihsan: Yes, but there is a cheaper trajaya, the originally fenceless ter- KL city centre because the traffi c while. I have been living in Penang but I’m not happy on my way here way to do it. We have gated com- raced [homes] are being fenced up is bad. Car parks are diffi cult to for the past fi ve years. Penang is [Petaling Jaya] because of the traf- munities because we don’t feel because of crime. I think we have find. Shopping is a very typical top of the list [in being happy] in fi c and to be caught in a jam. And safe, that is the general reason. failed to control crime properly. thing to do in the city centre, but the survey, isn’t it? If that is true, like what Ezumi said, I’m happy Carrie [Fong] pointed out correct- the brands there [at the malls] can I would suggest it is probably be- with the people around me, my ly about inter-community activi- Benson: So does putting up more also be found all around the world. cause Penang is smaller, and so it community. I stay in Shah Alam ties to get people to interact more. barriers create less opportunities Hence, this is why I spend more brings people closer together. It is where it is less dense and is a But for designers like me and for crime [to take place]? If you time in the suburbs like Mont’Ki- possibly a big part of the reason. mixed community. Ezumi, what we are more con- take Medan Pasar in downtown KL ara, Damansara Heights and Petal- On what Liew said — he is hap- cerned with is the need to have as an example, it doesn’t feel par- ing Jaya, where you will get a more Rehda Youth chairperson Car- py in the city but the city itself has more public spaces that belong ticularly safe at night. One reason unique and localised experience. rie Fong: I’m from Ipoh and our problems such as not being very to everybody. people don’t go there is nothing I think it is the unique sense of family moved to KL when I was walkable. We are not taking full ad- Th e work that I do is to create is open. Th is reminds me of what belonging combined with connec- six as my father found that there vantage of the city centre and this public places that you want to go Jane Jacobs said: “Th e safest street tivity that makes a place everyone is probably why our youngsters are to and you feel safe being there. is the busiest street.” Th e eyes on can feel happy to live in. very car-oriented. KL is actually so Th ere are many things that we can the street and the ownership of much better than it was and it is truly actually do to enjoy the city life the street is what make it the saf- Lafarge Malaysia president and wonderful to walk — along the river, besides shopping. est street. CEO Th ierry Legrand: I have been Happiness is Dataran Merdeka and Medan Pasar in KL for two years with my fami- — compared to a few years back. Legrand: I like walking very Fong: I’ve been a [crime] victim ly, and yes, we are happy. Th e life about how many And there is no city in the world much, but KL is unlike Paris, three times! We really need to look here is quite easy although there is people you know.” that has the oldest virgin forest right where there will be some walk- at the root cause of the problem. traffi c jam. Th e public transport is — Benson smack in the city centre — the Bukit The people who are doing this not the best and the green spaces Nanas Forest Reserve. Sometimes are in a bad position and they are of the city are not comparable to we fail to tell that story. So I think we probably among the urban poor. the other cities that I have lived should walk more in the city, as that I think they have jobs, but they in. But, compared with other plac- will make us happier and healthier. could have an emergency and es in the region, it is rather good. As for gated communities and they need a little bit more cash. And we have a community where safety, among other things, I think it Hence, the quickest way is to resort we can get connected quite easily. is a failure of our system and com- to crime. We really need to drill munity. Like Ezumi said, these down to the root of the problem PAM president Ezumi Ismail: I gated communities are actually and it starts from education, jobs, am from Kota Bharu and I stayed creating enclaves and separating income and the cost of living. in a “kampung” when I was four or people, so I think we are going in fi ve years old. At that time, every the wrong direction. For me, real morning I followed my grandfa- ther to the restaurant he was op- erating in the city and then back to the “kampung” in the evening. I If you ask am still doing the same thing after I moved to KL. I work in the city and me if I’m go back to my “kampung” at Bukit living happily Antarabangsa at night. Th ere are diff erent character- in KL, the istics of people living in town and answer is those living in the “kampung”. In the yes.” “kampung”, you will know almost everybody there and you can guess — Liew a person’s behaviour. But in the city, you cannot guess what a person is going to do. Hence, everybody is like an enemy as you don’t know whether he or she is a good person or not; whereas in the “kampung”, everybody is like your friend. So, the city folks put up barri- ers and fences around their living FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY TEP 9 ROUNDTABLE ON THEEDGEPROPERTY.COM-LAFARGE HAPPINESS IN THE CITY INDEX 2017

Benson: I think the answer is a call the last-mile connection. It’s combination. It is not a person or hop on and hop off . It works in an organisation’s responsibility. So How to build a liveable city? Melbourne; it works in Vancou- there are people like the MIP, PAM ver; it works in European cities. and Th ink City — all these organ- And it can work with us. isations have some obligations to Au: Matt [Benson], you have touched on a very interesting point about If cost is an issue, bus lanes can address this issue. Meanwhile, the Medan Pasar. In your opinion, what needs to be done? Is there a role for work too. Our bus lanes, however, business owners, property owners, need a bit of tweaking. You know, migrant community and even the the government or the people themselves, or maybe a combination? our bus lanes are on the left. homeless have some responsibility. In places like Curitiba, Brazil, To be fair, Medan Pasar is a tran- the bus lanes are in the middle and sitional space with bus stops and Benson: That counts. But the Legrand: Is it the planner’s job? Is just divert a bit. I think Malaysia they connect people to the other other public transportation. In a thing I want to say is unfortunate- it the government’s job? I think it should start giving more power to side of the street via overheads, transitional space where there is less ly, or fortunately, most people in is the people’s job to think. the local government for local gov- underpasses or undergrounds, ownership, safety issues will be cre- Penang are from Penang, whereas As a company, we could have ernance. We are mature enough to and it works fi ne. Th at’s the thing ated. People usually don’t commit people in KL come from all over stayed with our goal in the past, say the day-to-day running of the you want. Trams will give a certain crime in their own neighbourhood the country. Do you have a family which is producing cement and city should be given to the people. character to the place. We are go- and I remember someone said a few network? Do you have an attach- concrete. When you ask me, “where do ing that way — we have free buses years ago: “Th e best thing to turn off ment to the city? Now, if we want to get people you want to live?”, I say here. I know like the GoKL. a crime is a mother with a child.” So motivated and emotionally linked we are changing — it is a long bat- having a family presence in an area Ezumi: Th ere is a sense of own- to the company, we need to have tle but we are changing as a coun- Benson: SPAD [Land Public will actually change the way people ership in Penang. Some of the old something with more value that try, city, people. And what Lafarge Transport Commission] is doing see the space. I think we need more uncles and aunties have been do- they can contribute to. Then we is doing is great. We should fi nd a feasibility study on that now. diversity of lives in the area. ing the same things for the past 10 came to building better cities and solutions together. I agree with Ihsan that the city years. Th ey know they can change helping others build better cities — I centre serves a commuter popu- Legrand: I have lived in really dif- their lives if they want to but they mean, people working on all kinds of Liew: A sense of belonging is actu- lation. It is great to get in and out ferent environments. From a safe- choose not to change and they solutions. And this works. I can see ally an aspect of community living. of the city but not around the city. ty point of view, I truly believe that keep doing the same thing. Th ey the level of motivation and engage- Like I said earlier, the uniqueness of So, I take your point on the last safety is fundamental for good sell coff ee at the coff ee shop, the ment we can get and it has nothing a place can evoke a sense of belong- mile. It will improve the internal quality of life. It is a combination original way. But there’s one thing to do with cement production. Yes, ing. At EcoWorld’s projects, we do mobility within the city centre. of a lot of things — enforcement, I want to mention here. We talk we are still producing cement and not have a cookie-cutter template. clean and beautiful places, and a lot about the hardware of the concrete but we are encouraging In one of our projects, Eco Ardence, Legrand: During the summer, many, many other elements to cities — the city design, the land- people to have ideas and letting for instance, we have etched out 26 I went back to my own small prevent crimes from developing. scape, the softscape, the buildings. them know they have a small part acres out of the 533 acres together hometown in France where it is But we don’t really talk about the of a bigger role. It’s everybody’s job. with the lake to house recycled con- known for its middle-age herit- Liew: When we first launched software of the city. Th is is a good I have lived in Paris — you see tainers, which will form a lifestyle age. Th ere were a lot of tourists our projects in Eco Majestic, Se- start for us to talk about happiness. everyone commuting from many as well as food and beverage hub — and activities there. For instance, menyih, we were selling terraced Happiness is a software. countries to Paris or London and Ardence Labs. We are encouraging you may find yourself sudden- homes without walls and parti- We cannot physically measure they are emotionally linked to the new businesses, home-grown local ly playing a game with someone tions to separate the roofs, but happiness by the size of your car city very quickly even if their par- brands to use this as a platform to else, and this connects people. one of our customers asked us to or house. We need to look at the ents came from Greece or Perth, link the entire township. build the wall so that the neigh- software as well. A city with built for instance. I feel it is very impor- And through our bicycle lanes Fong: I have to admit the covered bour can’t climb over and break environment is not enough. We tant to develop the heritage and and pedestrian walkways, we get walkways in KL city centre and into his house through the roof. need more activities. We need to be the ability to embrace the heritage. people to walk and cycle as their the lighting have improved espe- If you are going to live in that aware and focus on the emotions everyday experience. cially at night. Th e money DBKL area, you should trust your neigh- and beliefs of the people. Benson: Take Penang, for exam- [KL City Hall] has spent to build bours and if you do not trust them, ple. Because we [Th ink City] have Au: On public transportation and all this is great. why would you live in the area? Au: And whose job is it to cre- been there the longest, our pro- connectivity — do you agree it is I think the current level of trust, ate awareness and to instil this gramme there is a bit more ma- crucial for a better city? Ihsan, I Ihsan: We are all for sustaina- even between neighbours, is low. sense of belonging? tured, and it [a sense of belonging] recall that you believe in trams? bility. Too many cars, too much Hence, gated-and-guarded com- is not necessarily the direct result carbon. Walking and cycling are munities are becoming more and of the city. Data showed volun- Ihsan: Yes, yes, I do. When I was something we can look at. But more popular. But like what Ihsan teerism and membership of soci- in charge of the Urban Design safety is important. said, even with a gated-and-guard- eties have increased over the last Guidelines for KL, I first men- I am not keen on elevated paths ed community, you need proper I truly believe eight to 10 years. I think, partial- tioned about trams in a meeting because once you are up above the planning to integrate the public ly, when George Town received and there were actually sniggers footpath, you are taking the people spaces, so that you can move from that safety is the Unesco world heritage status, in the room. Th e tram is what we away from the street experience, one area to the next area safely. fundamental for there is something to attach your- which is supposed to be the best I think a good example is Desa self to. For some of the old family experience. ParkCity. Despite its exclusivity, it is good quality of life.” groups that used to be part of the a very brought-together community — Legrand “kongsi”, there is increased owner- Fong: Places like Hong Kong have where residents interact with each ship. But I suspect it is not so much elevated paths because one can other a lot and are able to enjoy about the urban regeneration as walk to criss-cross the buildings. outdoor activities. Th at is what we it is about Unesco and heritage [EcoWorld] are trying to do as well. and worldwide recognition of Ezumi: Twenty years ago, a pro- So apart from just building gat- this space. But on the ground, posed 22km elevated walkway in ed-and-guarded homes, it is es- the ownership of spaces is not KL city was rejected because it was sential to ensure that residents feel easy — it is a diffi cult thing. feared it might spoil the charac- secure while encouraging activities ter of the city. Back in 1997, the among them. Th e role of a developer Ihsan: At the end of the day, only rapid rail line we had was the is not just to build and hand over the one has to feel like this city STAR LRT. Since then, you can’t homes to their customers. It is about belongs to him or her. That see the façade of Jalan Tun Perak. bringing together the community they are part of the city. Let me and to sustain the longevity of the CONTINUES NEXT PAGE township, so that a culture that is unique to the township is created.

Au: In terms of liveability, how do we compare with other cities Th e covered in the world? walkways Benson: Like Penang. in KL city

Ihsan: Yes, what is it about Penang centre and the that makes it safe and exciting? lighting have It’s the vibrancy. It’s like there is improved.” a festival all the time. You don’t have this in any other cities in the — Fong country. A mosque, a church and Chinese temple in the same place. TEP 10 FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY ROUNDTABLE ON THEEDGEPROPERTY.COM-LAFARGE HAPPINESS IN THE CITY INDEX 2017

FROM PREVIOUS PAGE the population of citizens in the city centre has declined and per- Does owning a home haps it is also about jobs. Where are the jobs? Are they in the city centre? Th ird comment: In Aus- make you happier? tralia, we have stopped talking about affordable housing dec- Au: Nature is said to be able to make people happier and healthier. ades ago, and now we are talking If that is so, what do we need to do to make our about housing diversity. Gener- ally speaking, I think Malaysia space a little bit more green? used to be like that. I think over the last two decades, I have seen more and more segregation be- Ezumi: One of the things we can at night again. You have the Mus- about aff ordable, aff ordable, af- in the world. It’s like over 70%, tween the rich and poor. It’s not do is urban farming. It will work lims who wake up early and go fordable. But I keep asking, af- whereas in European countries, race, it’s class. if we really want to. But people to the mosque. It is a nice mix, fordable to who? it is only 50% to 60%. would rather go to the super- you see. Is it aff ordable to the banks to Ezumi: We shouldn’t look market to buy vegetables. We are We have missed this opportu- give the loans because you have Ihsan: Yes, that’s the benchmark at pricing. We have to look at blessed with many cheap things. nity to tap on the richness of our that much salary so you can af- that we set. If you can’t afford whether it is affordable to own, Cheap water, cheap electricity, culture to make our city safer and ford to take that loan? But it is not to buy a house, the government to live or to grow. That is afforda- cheap petrol and cheap park- happier. Th ese are the things that really aff ordable. You are taking and developers could come up bility of a home. There were ing. This is one of the reasons we, as a planner, need to look at. a big chunk of somebody’s basic with public housing. All the low- houses in Rawang that were we have so many problems be- Whenever I am being inter- income and leaving him with very cost, so-called “aff ordable hous- sold for RM40,000 to RM50,000 cause everything is cheap. Every viewed, I always say awareness little to survive. I think Malaysia ing” are not in the city centre just four years back but nobody time I mention something relat- is important. Public awareness, needs to change. — they are way out. People will wanted to stay there, because ed to prices, people would say whatever you do in the city, has an We need to change our mind- then have to spend money on there were no jobs, no transport, because I have money. That’s eff ect. You can’t talk about hous- set of owning a house. We don’t transport. Really, it is like pun- no opportunity there. The house not true. One of the reasons why ing for a certain income group need to own a house anymore. ishing people for being poor. Stay is affordable in terms of price opportunities are rare in certain without thinking of the rest of It is an ideal. You see in Malay- away, spend more on your pub- but is not affordable for people places is because everything is the society. sia, what makes you successful? lic transport, pay for a house you to live there. cheap. For example, curry puff You see, Malaysia used to pro- I graduate, I have a car, I have can’t really aff ord. Th at’s putting So when we look at aff ordable here is RM1 for one, but in some vide low-cost houses that were a house. A better car, a better things in a nutshell. People might housing, we need to look at all the “kampung” they are still selling merely boxes — boxes with win- home. not agree with this kind of think- factors — it must be aff ordable to five for RM1. This is why peo- dows and a door you can kick ing, but this is what is happening. live there, to fi nd jobs and activi- ple are still living in the “kam- down. Th ere is no privacy. Th at’s Ezumi: And you have a loan to What you want to do is pull peo- ties there and to grow. We should pung” because it is cheap, but one thing we have failed with pub- pay. ple back to the centre, so that it also look at how the community they don’t have much opportu- lic housing. And throughout the is cheaper. can grow. nity to really make money. How- years, what has happened is we Benson: Correct me if I am wrong ever, they are happy. But here in have abused certain words in our — I think Malaysia has one of the Benson: I would like to make the city, we have money and can fi nancing system. Now people talk highest home ownership rates three comments if I may. First buy everything. That’s why we comment: KL particularly has a are more careless. Sometimes very high proportion of house- it is very difficult to get a good hold income and transport cost balance. — one of the highest in Asia. It To me, comfort is a reflection of the layout of Au: Is the provision of public When we look at aff ordable housing, KL. Second comment: It’s not is the most spaces in townships suffi cient? we need to look at all the factors — it so simple about people living in important thing in Could we do more? must be aff ordable to live there, to fi nd the city centre — we know that no matter what Fong: Th e great thing about the jobs and activities there and to grow.” kind of housing.” townships built today is that — Ihsan developers are not just trying — Ezumi to attract residents but are also place-making. Take, for instance, Desa Park- City; I know that there are many people who will travel all the way there just to use the spaces — they don’t live there. Besides the city, the decentralised areas with dense working communities also need public spaces and green areas. The Taman Tugu initiative to create a central park in KL city is a great initiative. Such initi- atives should also be from the government and not just the pri- vate sector. I wish to add that our young people have a great sense of be- longing. I think the number of social enterprises initiated by young people who want to im- prove the city and retain its cul- ture is great.

Ihsan: Definitely, definitely. There’s a difference between the public place and the public space. A public space is the road, the paths. But a public place is where you want to be and want to go because it is happening. It’s a place that excites you; it’s a safe place. We have a ready-made culture for 24/7 activities. We have the Chinese who eat breakfast early in the morning and supper late FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY TEP 11 ROUNDTABLE ON THEEDGEPROPERTY.COM-LAFARGE HAPPINESS IN THE CITY INDEX 2017

Legrand: From our [Lafarge’s] even though they are staying in It is not about bringing down the subsidised housing is a small por- saying let’s do that tomorrow, but perspective, we also look at how the same house. Th is is because price but by increasing the income. tion. Th e big one is the middle-in- that’s probably the solution to of- new solutions can ease the cost there is too much privacy inside come group who is fi nding it hard fi ce oversupply and getting people of building houses. Th ere are still the house. Th at is why I don’t think Benson: Frankly speaking, I think to buy a RM200,000 to RM300,000 back into the city. Maybe some a lot we can do to build aff orda- too little privacy is a failure. Prob- Malaysian houses are overpriced. house. Th at is the worry and that people do not agree with what the ble houses for those who want ably we should change, make it It is not aff ordable to many. is the gap! government is doing, but I think to buy. This is one axis we are less private in the home. the focus on public transport is putting a lot of our energy on. Maybe affordable housing Ezumi: Th at is for the high-end. Ezumi: Why is that the gap? You right — this is the way forward. Th e way we build our houses is can have less privacy as a start- But today, developers are forced see, the house is supposed to be still very traditional but we can ing point. You don’t need so many to sell houses at RM42,000 while sold at RM200,000, they marked Ezumi: The objective of a pri- build our houses quicker and rooms. People try to relate to so- the construction cost and land up to RM400,000 to subsidise the vate entity is to make money, no with good quality. cial problems caused by lack of price are RM50,000. social houses. Th at’s why you see doubt. The government is not privacy but I believe that it is the Th e house you buy at RM600,000 the gap. supposed to make money from Ezumi: I also want to mention other way around. Less privacy actually costs RM400,000 — the re- the people, so how to balance something about privacy in af- will make people behave better. maining RM200,000 is to [cross] Ihsan: I do not agree. But my this? fordable housing. People think subsidise the aff ordable housing conclusion is those [mid-range] If the developer sells a house that a lack of privacy in aff ordable Ihsan: When you are talking schemes. Th e price of a house in- houses are overpriced. I do be- at RM1 million which is valued housing is a failure, but the way I about “kampung”, you can just cludes costs such as infrastructure. lieve the government has a role, at RM200,000, let it be. But the look at it, the lack of privacy is a walk out of the house. But in a 600 Th e cost of doing business is high. and so do the developers as well government has to balance it success. Th e reason why people sq ft urban housing on the 20th Th ere are a lot of hidden costs that as the banking system. by creating houses priced at don’t really share common places floor where you live with three a developer has to pay. We are talking about aff orda- RM200,000. That will balance and are not going to public places children, it is stressful when you bility and very limited people can it out. This is a natural correc- is because they are too comfort- live in such a small place without Ihsan: Even if they build low-cost aff ord homes in the city. But what tion because people will go for able in their houses. They have privacy. Some houses even have housing, are developers going happened in Melbourne? It is the the government [built] houses. everything at home. such low ceilings that tall people to close down? No, they are just world’s most liveable city but it So what will private develop- I’m trying to relate it to a “kam- will hit their heads! making less profi t. It is the social started with a lot of problems, such ers do? They will need to bring pung” house. It is just one house But I agree that a low-cost pro- function of a developer. I mean, as oversupply of offi ces in the city. down the price. This is market and no privacy, so you stay at home ject can be nicely designed and be developers make money! Th ese were converted into apart- forces. only at night, while during day time a comfortable house that looks ments. Th at’s something we should you go outside. You go to com- good as well. I’m not saying we Au: This is very interesting. learn from Melbourne. Ihsan: We allow market forces mon places where you can meet should be a communist society, What do you see as the role of So where are we going? We have and we also allow selling at pric- a friend. but to me, comfort is the most im- the government in this? these cities to learn from, so let’s es beyond the value and selling If you have your own room with portant thing in no matter what not do the same mistakes. The property to foreigners. We have everything in it, you will not go kind of housing. Ihsan: We are talking about the solution that Melbourne provided accepted it as a negative problem out — siblings may not talk to social system now. Are we going was when there is an offi ce over- but not changing it to something each other or father and children Ezumi: I think “affordable hous- to get the market to think about supply, they converted them into positive. Th is is a worldwide phe- probably meet only once a day ing” is to sell it in its actual value. public housing? Low-cost and homes in the city centre. I’m not nomenon.

the TheEdgeProperty.com-La- farge Happiness in the City Attributes of a happy city Index 2017 survey was that so many people are not optimis- tic that the city will be better in Au: Name three attributes of a happy city. 10 years. If I were the mayor, I would invite more collaborations, de- Ihsan: The people have to be will come again and even live in and make the city barrier-free Ezumi: I think if I had the oppor- bates and contributions from all happy, the environment has to the city. because once you make spaces tunity, I would listen to the peo- over the nation and beyond the be taken care of and we have to connected and get more people ple, gather the people and work nation. I would wish to create feel safe. Legrand: I like the idea of in- into the city, I think people will together with them. But first I more engagement. clusiveness. A city has to be in- be happier. Secondly is to im- would like them to believe we can Fong: I think happiness in the city clusive for different ages — the prove public places. Th irdly, put do this thing together. Liew: I would focus on the de- is about inclusiveness for people young, the family and old peo- eff ort into providing safer homes Th e fi rst thing I would like to tails of the town planning, such of all races, gender, religions and ple. All people should be able in the city. The city belongs to do is get the houses built in the as how you walk from one end to social groups. Basic amenities to stay and enjoy the city. Green everyone. city centre. I believe I can solve another end, how you walk from must be accessible to people from and sustainable are the second the problem but I know many do home to the neighbourhood cof- all social groups. Also, a city’s attribute, and third is being con- Fong: I don’t know if I can infl u- not believe this. I would want to fee shop; how the place is main- identity must be maintained. nected and beautiful. I think KL ence but I would like to create take the opportunity to prove that tained; and how to maintain our When you talk about the best cit- is beautiful. more jobs and maybe bring in it can be done. culture and promote it rather ies in the world, you identify their more regional offi ces. You know, We no longer have problems than let it die off . character; it is something you will Liew: Apart from safety and con- regional offi ces are hardly based with joblessness. We just need to remember and enjoy of the city. nectivity, I think a sense of be- in KL but in Singapore and Hong create activitives and give peo- Benson: For me, it is all about Just like Eiff el Tower, there is no longing or having ownership of Kong. It is quite sad because I ple more opportunities. We can building up the teamwork and development allowed around where you live is important. Cul- think we have a lot to off er, such put talents together and provide connectivity between govern- the tower in order to maintain ture is also important. Malaysians as cheaper rents for the same them chances to sustain in the city ment agencies and people. the best view of the skyline, thus like to adapt and follow other amenities and infrastructure, but while retaining our culture. For ex- maintaining Paris’ identity. We people’s culture, rather than em- we just don’t have that crowd. ample,we can provide handicraft Legrand: What about you, have the Twin Towers in KL and brace our own culture. Th e next one is architectural. training and jobs, such as wood Foong Yee? What are your right now, I’m a bit concerned We have a lot of eco, green archi- crafting or wau and wayang kulit thoughts? because it is a bit overshadowed Benson: According to the Global tecture. I would love to cooperate making. by other upcoming skyscrapers. Happiness Report in 2016, Malay- with more local artists and turn I know there are still a number Au: For me, it is about the peo- I am being emotional maybe be- sia was ranked 42 out of 150. Not our buildings into something that of people who are masters in these ple, community, integration, cause I feel a sense of belonging too bad. But my one word to move can tell our city’s character. I think skills. We can ask them to transfer joining the dots and a sense to this city. We need to maintain up the happiness level is to have Penang is our best example, as well their skills to others. If you can get of belonging. The trust factor our identity. more “kampung-ness”. as Melaka. this model successful, people will placed in the system is key. I feel Many old heritage shops are start believing in you. But we have we are now in a trust defi cit of Ezumi: A city has to be liveable — Au: If you were the mayor, what forced to move into malls. We are to work together. how things are managed and or- where people do not harm each would be your top three pri- going to lose the aff ordability or ganised. We need to overcome other. It has to be loveable and orities? the ability to fi nd RM1.50 nasi le- Legrand: I think connectivi- and change the negative per- memorable. Every time people mak because we are moving the ty and raising the visibility of ception. Th is is urgent as such come to the city, they love the city Ihsan: First would definite- retailers into establishments that the country’s heritage is what negative sentiments could lead and remember the city so they ly be to improve connectivity come at a higher cost. I will do. What strikes me in to self-fulfi llment. TEP 12 FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY FEATURE

Where to shop in Melaka

Tourist arrivals in Melaka Tourist arrivals in Melaka are expected to grow this year based on BY SHAWN NG “the vacancy rate [for shophous- about two to three years ago. consistent increase in the past five years es] in Melaka is higher now”. “The tourism industry in Mel- 20,000,000 ecognised for its em- Most of the vacant shop units aka is doing quite well, but over- blematic historical are located in Pulau Melaka, all the population is still not big 16,750,000 16,282,081 15,736,859 edifices and favoured Taman Kota Syahbandar, Taman enough to support and absorb 15,032,030 for its array of deli- Kota Laksamana Jaya and some the supply of shop units,” says 15,000,000 14,312,217 13,711,134 cacies and cuisines, areas close to Pulau Melaka in the agent, who does not want to Melaka is a popular Melaka Raya. be named. Rdestination for visitors near and He says the mismatch in sup- He draws attention to the shop- 10,000,000 far. ply and demand is the reason houses situated along Jalan Lim- This is evident from the rising behind the oversupply situation. bongan to Kota Laksamana area, number of tourists over the years. “Outsiders would think that it is which are only 30% to 40% occu- 5,000,000 According to Tourism Melaka, always crowded in Melaka city pied. Completed about five years about 16.28 million tourists visited because they visit the state during ago, some of shophouses are still Melaka in 2016, of whom 68.93% the peak periods, but it is actually vacant. were locals. a false impression. There are not “Even some unit owners in a 0 Target for It is the highest ever tourist ar- as many occupied properties in shopping mall have approached 2012 2013 2014 2015 2016 2017 rivals recorded by the state and town as many would perceive.” us to market their units, which 3.5% higher than the 15.74 million The problem, says Lee, has shows that there is not enough SOURCE: TOURISM MELAKA tourists registered in 2015. The caused the retail shop units mar- demand here, so I’m a bit wor- target tourist arrival for 2017 is ket in some locations to soften ried looking at the future supply Supply of shops in Melaka on an uptrend 16.75 million, an increase of about and vacancy rates are creeping of some 7,000 units,” he adds. 2.87% compared to last year, the up. “We actually do not need that Twincrest Properties real estate Units tourism office tells TheEdgeProp- many shophouses in Melaka,” he negotiator Choo Yu Fong, who erty.com. opines. specialises in Melaka properties, 20,000 In tandem with the positive Data from the National Prop- says that it is a tenant’s and buy- tourist arrivals, shophouses have erty Information Centre (Napic) er’s market in the state now due been mushrooming in Melaka city showed that the supply of shop- to the slowdown in the Melaka 15,000 as more businesses emerge to ca- houses in Melaka has been grad- property market. ter to the growing tourist market. ually increasing over the past few The lack of human traffic dur- However, the rise in the num- years. There were 18,948 shops as ing off-peak seasons in the state 18,948 18,618 18,828 ber of shophouses has not turned at end-2016 and the first quarter has resulted in a challenging busi- 10,000 18,283 out to be good news for this com- of this year (1Q2017) — an addi- ness environment. “When there 16,968 mercial property market segment tion of 1,980 units or 11.67% from are not enough people, businesses in the historical city. end-2012 and an increase of 120 are very hard to sustain and forced 5,000 units or 0.64% from end-2015. to close down. This has caused the Oversupply Looking ahead, the future sup- rents for shophouses to weaken According to Jordan Lee & Jaafar ply of shophouses in the state this year,” she says. 0 Sdn Bhd Melaka branch manager stood at 7,358 units as at 1Q2017. 2012 2013 2014 2015 2016 Lee Thiam Sing, there is an over- A Melaka-based real estate Where are the hotspots? supply of shophouses in Mela- agent concurs with Lee. He says Despite the lacklustre proper- SOURCE: NAPIC ka. And because of that, he adds, the oversupply of shops started ty market, CBRE|WTW Melaka FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY TEP 13 FEATURE

Total number of unsold shops in Melaka Total unsold Completed Under Not shops in Melaka construction constructed 1,000

800

600

400

200

0 2012 2013 2014 2015 2016 Positive growth SOURCE: NAPIC Going forward, Teh anticipates prices and rents of shophouses in Melaka Raya to continue grad- Rental yields of 3-storey, 1,540 sq ft shopoffices ually rising as the medium-term outlook and growth for the tour- in Melaka Raya ism industry remains very pos- Asking Asking monthly itive. monthly rents rents RM4,500 However, he warns that it Asking RM4,500 to Asking monthly Asking to RM6,000 monthly would not be wise for investors rents monthly RM6,000 rents RM4,500 rents RM5,300 to expect rental and price growths to RM4,500 to to remain constantly high, as one 2,000,000 RM6,000 to RM6,500 RM6,000 can’t tell the future and negative 1,500,000 events such as the MH370 trag- edy and global economic crisis may occur occasionally and im- 1,000,000 pact business confidence and the tourism industry. Transacted Transacted Transacted Transacted Transacted 500,000 price price price price price He notes that shophouse prices RM1.4 RM1.3 RM1.738 RM1.85 RM1.4 in Melaka Raya weakened from mil mil mil mil mil 0 RM1.4 million in 2012 to RM1.3 2012 2013 2014 2015 2016 million in 2013 before they moved into an uptrend in 2014. On the Indicative 4% 4% 3% 3% 5% Shophouses along rental other hand, rentals had remained yields - 5% - 6% - 4% - 4% - 6% the Melaka River. stagnant for three years from 2013 to 2015 before increasing strong- SOURCE: CBRE|WTW ly in 2016. According to data from Napic, CBRE|WTW MELAKA 11 housing schemes in the state estimate current shopoffice pric- Sitting on a 138-acre site in saw their ground floor shops re- es in Melaka Raya to range from Kota Laksamana, Impression City cord a year-on-year double-digit RM1.5 million to RM1.8 million. is a RM7.7 billion mixed develop- growth in monthly rents in 2016, Commercial Prices below RM1.4 million would ment project featuring the first- namely Taman Melaka Raya, be cheap and above RM1.8 mil- of-its-kind Impression Melaka Prime Square in Bandar Hilir, investments lion would be expensive,” Teh — an iconic tourist landmark that Taman Kota Laksamana, Taman in Melaka elaborates. showcases large-scale live cultural Pertam Jaya, Taman Peringgit Jaya, He shares that Melaka Raya music performances. Taman Malim Jaya, Taman Ayer continue and Kota Laksamana are among With a gross development val- Keroh Heights, Taman Teknolo- to be the most popular areas for shop- ue of some RM40 billion, Melaka gi Cheng, Taman Cheng Permai, houses in Melaka. Hence, inves- Gateway spans 1,366 acres on Taman Rambai Jaya and Taman attractive.” tors should keep an eye on these three artificial islands and one Angkasa Nuri. — Teh areas as they are located in the natural island on the Straits of With annual growth rates of town centre and near to tourism Malacca. The first phase of the between 11% and 25%, all the hotspots in Melaka. mixed development consists of projects are located in Melaka He adds that the pre-war shop- Malacca International Cruise Tengah, with the exception of houses at Jonker Street and Heer- Terminal, theme park, shopping Taman Angkasa Nuri, which is en Street are also very popular as mall, education centre and ferry in Alor Gajah. they are located in the tourism terminal. Commenting on the strong hotspot. Besides the two projects, Teh double-digit growth, Teh believes “I suppose these pre-war notes that another catalytic project it is due to the rental revision of shophouses are good for corpo- poised to give a boost to the Mela- lease renewals every three years, rate investment, such as chain ka property market in the medium which translates into an annual shops, franchises, big retailers to long term is the proposed Kuala compounded growth rate of 3.5% and wealthy hobbies, but not for Lumpur-Singapore high-speed to 4.5%. new business owners or business rail (HSR). “Looking at the growth in tour- starters as they have to handle The HSR is expected to have ism-related commercial activities slow business during weekdays one intermediate station in Ayer over the past three years, we are branch manager Teh Hong Chua in Melaka Raya as an example. and busy peak days during week- Keroh, Melaka, while the remain- not surprised with this growth points out that the commercial The shopoffices’ asking month- ends,” he says. ing seven stations will be locat- rate. Primarily, the strong shopof- investments in Melaka continue ly rentals range from RM5,300 to As tourism is the underlying ed in Bandar Malaysia (Kuala fice demand and rental growth is to be attractive as rental yields RM6,500 while the average trans- factor driving the business senti- Lumpur), Putrajaya, Seremban, being driven by the consistently of 5% to 6% are still achievable acted price was at RM1.4 million ment in Melaka, the primary tar- Muar, Batu Pahat, Iskandar Puteri above-average growth of tour- in some of the tourism hotspots, last year. This translates into in- get of retailers as well as food and and Singapore. ism-related businesses such as such as the areas in Melaka Raya dicative rental yields of 5% to 6%. beverage (F&B) outlets is tourists, Targeted to be operational by F&B, accommodation, tour opera- nearby Dataran Pahlawan Mel- “In Melaka Raya, the prevailing hence shophouses that are located 2026, the HSR expects to call for tors, souvenirs, novelties and gifts. aka Megamall at Jalan Merdeka rental for a 3-storey shophouse is near proposed new tourist attrac- its first tender in 4Q2017, Land “However, the growth rate at and Melaka City, which was list- about RM5,500 per month. Below tions such as Impression City and Public Transport Commission Taman Ayer Keroh Heights and ed as a Unesco World Heritage RM5,000 would be considered a Malacca International Cruise Ter- chairman Tan Sri Syed Hamid Taman Peringgit Jaya is surpris- Site in 2008. bargain and above RM6,000 would minal in Melaka Gateway would Albar told reporters on the side- ingly much higher, although they He cites the 3-storey shopof- be expensive. also offer the best opportunities lines of the third HSR Symposium are located much further from the fices with built-ups of 1,540 sq ft “In terms of selling prices, we for investors, Teh adds. in Malaysia. city centre,” he says. TEP 14 FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY COVER STORY

n Sydney, a 19-year-old trainee teacher James Kidd tried harnessing the power of social media to buy a house of his own. Against “ridiculously high housing prices” in the most populous city in Australia, he started an on- line fundraising exercise on GoFundMe in February this Weird ways year to raise A$1 million (RM3.39 million) to achieve his Idream, according to a News.com.au report. To date, he has only managed to collect A$110 from 15 people, of which A$5 is from his mother. His attempt has highlighted the challenges and unusual methods some peo- ple use to secure a home for themselves. PEOPLE BUY The process of buying a property, which is considered relatively easy in Malaysia, has been so taken for granted by us — we may not realise that in some countries, buying a property can be more challenging than just surmounting bureaucracy. Against certain historical and cultural backgrounds and PROPERTY political systems, some people have contrived creative and innovative ways to purchase property, which may sound weird to others. BY SHAWN NG Here are four different ways these people have taken to secure roofs over their heads:

the property owned by the other party. In Vietnam, trading with the precious metal, especially Permanent Subsequently, both parties will have Gold property for big items like property. to place escrow deposits at the local title prices are of- In today’s market, using gold bullions house-swapping companies. If your property is free and bullions ten quoted in to trade is still very common although clear from mortgage, you only have to taels of gold Vietnam has transformed from one of Back in the days before monetary instru- order surveys and appraisal reports and rather than the local currency due to the world’s poorest nations to one of the ments, people used their possessions, wait for the title company to prepare all monetary inflation and currency de- fastest-growing economies in the region such as precious metals, livestock and the documents and close the deal on the basement. Moreover, the Vietnamese with a 6% GDP growth in 2016 while the food, to exchange for goods and services. same day. Title companies review public prefer to use gold bullions to pay for Vietnamese dong has strengthened from The archaic practice is obsolete in today’s records relating to real estate, in order to big ticket purchases rather than apply its low in the past. world, where people use cash, cheque, inform all interested parties of the sta- for bank loans. The tide is turning in the country cards and even e-money to buy things. tus and condition of title to the subject Th e habit can be traced to the Vietnam though, as more people have started us- But do you know property bartering still property. War, which offi cially ended in 1975. At ing cash to purchase their houses. Howev- exists today? Th ere are even house-swap If your property is bound to a mortgage, that time, post-war infl ation was insane- er, most people are still resistant to bank listing portals. you can still trade it for the property you ly high as cities, infrastructure, farmland loans as they do not trust banks and deem In the US, the concept of permanent want. All you have to do is to apply for a new and buildings were devastated by the war, the paperwork too much of a hassle and house-swapping emerged about 10 years mortgage for the property you are buying which resulted in an economic slump in the interest charges too high. ago, when the property market experienced (swapping) for. the country. a downturn — mortgages were hard to get Th e house-swapping process worked out According to data portal IndexMun- and buyers were difficult to find. perfectly for Pamela, who traded her house di, annual inflation rate skyrocketed According to permanent house-swap- in Florida for an adobe home in New Mexico. 400% in 1986 from a year earlier, which ping and real estate exchange listing por- Both parties hired a major closing com- caused the Vietnamese dong to become tal GoSwap.org, the concept is especially pany that has worked with house swaps one of the worst-performing currencies beneficial to someone who is moving to before and has offi ces in the two states to in the region. a different location and simply wants a close the deals. Hence, the Vietnamese started to buy similar property to live in. “Th e closing worked out perfectly — plus, gold to hedge against infl ation and began It works for properties with and with- we were able to save a lot of money by do- out mortgage. ing it ourselves in trading,” Pamela shared The steps are simple. on GoSwap.org. First, post your property on a “After closing, [the re- While most allows one of them to hold their common listing portal to find match- spective parties] packed Fake people often property while the other can start with a es. Once you have found a and drove our moving trucks, cite lack of clean slate and purchase his/her “first” match and both parties have west and east of the 2,000 divorce communica- home, which technically is the couple’s agreed to proceed, you will miles. It has been a great tion, constant second home. After the purchase is com- have to prepare two con- adventure and [both sides] arguing and infidelity as reasons for their pleted, the couple would marry each oth- tracts — one for selling your love our new homes and life- divorce, there are mainland Chinese cou- er again. property and one for buying styles,” she said. ples who are filing them to dodge fork- According to Beijing government data, ing out more money for a second home a total of 97,600 couples got divorced in purchase. Beijing in 2016, a 73% increase over 2014, In order to cool the country’s red-hot while more than 22,000 couples remarried defector and activist in Seoul. property market, many local governments their former spouses in 2016, a 131% rise Buying from the It is common for defectors to send of fi rst- and second-tier cities in China have compared to 2014. money to the North so their families can introduced cooling measures including lim- It is a chance for them to grow their black market buy better homes. Kim and two other de- iting purchase by existing property owners, wealth, said Mr and Mrs Cai, a couple from fectors said they have also heard of some and requiring larger down payments and Shanghai. Th e couple decided to invalidate people buying property as an investment higher interest rates for the purchase of their marriage in February 2016, after the Buying and selling a home is illegal in ahead of what they hope will be the even- second homes, besides a tax on profi ts from Shanghai government started implement- North Korea as the socialist country owns tual reunifi cation of their impoverished secondary sales. ing restrictions, to buy an apartment for 3.6 all property. But according to a Reuters homeland and the wealthy South. Since first million yuan (RM2.29 million), adding to report, the percentage of North Koreans Apparently, the property deals are done homes are not three other assets in their coff er. who are buying their own homes — as in US dollars in the capital Pyongyang affected by the “Why would we worry about divorce? opposed to waiting for the government and in Chinese yuan along the border cooling meas- We’ve been married for so long,” Cai, the to assign one — is growing rapidly. with China, where most of the North’s ures, many cou- husband, told Bloomberg. “If we don’t buy Surveys among defectors showed that trade with the outside world takes place. ples who already this apartment, we’ll miss the chance to buying and selling property is becoming According to the report, buyers and own a house get rich.” more widespread and sophisticated in the sellers then allegedly bribe housing offi - have manoeu- However, like-minded couples may not country. Th e defectors reportedly said bro- cials to approve the transaction by issu- vred around be able to do so now as local governments kers can be found with lists of properties ing or modifying residency documents. the regula- have started countering the loophole. For for sale in markets selling food and cheap Kim told Reuters he had a friend who tions by filing example, the Beijing government has an- consumer goods, which are tolerated by needed to raise money in 2013 to fund his for “fake” di- nounced that people who are divorced for the government in cities and towns. escape to the South, so the friend sold his vorces. This less than a year can no longer receive the “You can fi nd a house you want by apartment in the North Korean border city benefi ts of a fi rst-time buyer in their second asking brokers,” said Kim Young-il, a of Hyesan for 40,000 yuan (RM25,484). home purchase. FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY TEP 15 FEATURE China investors shifting focus to domestic market

BY TAN AI LENG

he Asia-Pacific region has been impacted by China’s capital out- Logistics new supply concentrated in Greater Seoul, Greater Tokyo and Greater Osaka ing momentum to moderate gradually as flow control with China’s out- service sector sentiment softens. bound investment in Asia Pa- 1H2017 completions 2H2017 pipeline % Completed of 2017F pipeline In India, the expanding fi nancial and cific in the first half of this year manufacturing sectors have provided sup- (1H2017) having slumped 59% 14 70% port to the leasing market, but the weak- Ty-o-y, according to CBRE Research’s Asia 12 60% ened performance in the IT and outsourc- Pacific Marketview 2Q2017 report. ing sectors might impact the offi ce market. 10 50% China investors have instead turned CBRE Research also noted that co-work- their investment focus to the domestic 8 40% ing adoptees are emerging as an important market, which has seen transaction volume 6 30% new source of offi ce leasing demand. In in China increase 46% y-o-y in 1H2017 to Singapore, one company plans to move US$14.5 billion (RM61.9 billion), of which 4 20% about 100 of its employees to co-working

79% of the transactions were done by locals. ft) pipeline Development (million sq 2 10% spaces to test the concept before adopting Notable transactions recorded in Chi- 0 0% it at its new headquarters. na during 2Q2017 include Chongqing Singapore Shanghai Melbourne Sydney Beijing Brisbane G. Osaka G. Tokyo G. Seoul Overall, rental growth in Asia-Pacifi c Tiandi, a mixed development owned by commercial space remained weak in 2Q2017 China Vanke Co Ltd sold to Shui On Land at just 0.5% growth q-o-q. India, Australia Ltd at a price tag of US$604 million, while F&B retailers spearheaded leasing and China have seen steady rental growth Metropolitan Plaza which is owned by Link demand in 2017 while Singapore’s offi ce rental market has REIT was sold at US$592 million to GAW fi nally reached the bottom after eight con- Capital and Morgan Stanley. 2015 2016 1H2017 secutive quarterly declines. Overall, Asia-Pacifi c commercial real 50% estate investment turnover increased by Retail: F&B retailers take the lead 11.5% y-o-y to US$53.2 billion in 1H2017. 40% Food and beverage (F&B) retailers have Most activities are focused on China, Ja- spearheaded retail leasing demand in pan and Hong Kong, which collectively 30% 2Q2017 due to relocation activities, among accounted for 66% of the total investment other reasons. turnover across the region. 20% For instance, the recent ban on liquor in Activity in Hong Kong remained robust, hotels and restaurants within 500m of na- supported by the commercial land market 10% tional highways in India has caused a wave that saw local investor transaction volume of relocations. of US$8 billion in 1H2017. 0% In Japan, some restaurants that were lo- In terms of outbound investment, re- Coffee Specialist Mid- Luxury Value cated in struggling department stores have and clothing range and and gional investment by Hong Kong buyers restaurants fashion business denim moved to other places. surged 300% y-o-y in 1H2017 amid a wave The F&B sector, however, is gaining mo- of deals in Singapore. SOURCE: CBRE RESEARCH, 2Q2017 mentum and CBRE Research noted that For instance, FWD Group, owned by several cosmetics retailers are jumping on Hong Kong businessman Richard Li — the the trend by opening pop-up cafes either youngest son of Li Ka-shing — has bought attached to their stores or as separate en- a 50% stake of One George Street in Singa- ers in Australia were reluctant to sell, lim- Robust offi ce leasing demand in China tities, to strengthen their competitiveness. pore from CapitaLand for US$425 million. iting the investment activities, and as a and India For instance, Chanel’s COCO café has Tokyo continued to attract the bulk of result the investment turnover in Australia According to CBRE Research, the net ab- opened a new branch in Hong Kong, follow- investor interest with more transactions declined in 1H2017. sorption of offi ce space has improved 26% ing the launch of branches in Tokyo, Seoul, concluded in Yokohama and Osaka, which CBRE Research anticipates the full-year y-o-y to 14.5 million sq ft net fl oor area in Singapore and Shanghai. collectively accounted for 26.9% (an in- transaction volume to be flat compared 2Q2017, supported by robust leasing de- However, department stores are still strug- crease of 19% y-o-y) of the total turnover, with last year, with Hong Kong and China mand in China and India. gling in many markets but mall operators are said CBRE Research. remaining upbeat while Singapore will see In China, tier 1 cities registered solid taking action to revive their business through Meanwhile, CBRE Research observed less activity as availability is tight follow- net absorption from domestic companies. renovations and working on the tenant mix that despite investors’ strong interest, own- ing the completion of several major deals. However, CBRE Research expects the leas- by off ering new brands/products. CBRE Research expects retail rents to remain fl at in 2H2017 as the slow recovery Transaction volume by market in consumer demand will continue to con- strain retailer in brick-and-mortar stores. (US$ billion) 0 5 10 15 20 ‡ Capital controls encouraging domestic investors to buy locally Logistics: Tapping on the strong China ‡ Foreign investors focusing on assets in tier 1 cities, particularly Shanghai growth of e-commerce CBRE Research said investor demand for ‡ Investment activity being driven by the low cost of debt Japan logistics assets remained strong amid con- ‡ Investors continue to seek opportunities in regional cities tinued growth in e-commerce, thus supply ‡ Landlords turning more aggressive towards asking prices after new Hong Kong in Asia Pacifi c is rising with 72.9 million sq benchmark office transaction ft of logistics space expected to be delivered Owners’ reluctance to sell limits investment activity Australia ‡ before end-2017. ‡ 2H2017 likely to see an improvement Most of the new supply is concentrated in ‡ Office assets remain the primary focus Greater Seoul, Greater Tokyo, Greater Osaka Singapore ‡ Investors from Hong Kong and China most active and Western China but the increasing sup- ‡ Investor sentiment unaffected by geopolitical tension ply will put pressure on rental growth — for South Korea ‡ Foreign buyers remain keen on assets in Seoul instance, Greater Seoul has seen landlords trying to reduce rental to attract tenants. India ‡ Steady flow of deals in the office and logistic sectors In 2H2017, Greater Seoul, Greater Tokyo and Greater Osaka are expected to see the ‡ More Thai developers forming- joint ventures with foreign partners to *Other SE Asia completion of 8.5 million, 6.1 million and target large prime land sites for mixed use development 5 million sq ft of new supply respectively. Activity remains limited but could pick up in 2H2017 amid stronger Taiwan ‡ “New supply comprises mainly high-spec demand from foreign investors modern facilities and will attract e-com- merce fi rms. Lower-grade warehouses are New Zealand 1H2017 1H2016 ‡ Investment activity constrained by decline in bank loan to value ratio therefore likely to be the most vulnerable SOURCE: CBRE RESEARCH, 2Q2017 to falling rents and higher vacancy,” said NOTE: *OTHER SE ASIA INCLUDE MALAYSIA, INDONESIA, THE PHILIPPINES, THAILAND AND VIETNAM CBRE Research. TEP 16 FRIDAY SEPTEMBER 8, 2017 • THEEDGE FINANCIAL DAILY FEATURE

BY MATT GROSS The compound includes two parcels of land, one with an 8,000 sq ft, 5-bedroom house, the NEW YORK: The Saybrook Breakwater other a 2,643 sq ft, 3-bedroom one. Lighthouse is a Connecticut icon. Built in 1886, it sits at the mouth of the Connecti- cut River, in the exclusive Fenwick section of Old Saybrook. Since 1993, its “sparkplug” design has adorned the state’s “Preserve the Sound” licence plates. But for the fi rst 131 years of its existence, the cast-iron and brick Breakwater Light- house has had a reputation for hardship. Life was “cold, damp, and uncomfortable at the station for the keepers”, according to a local enthusiast site. “Going to shore for supplies in the 12ft rowboat required a hazardous journey fighting the Connecticut River’s strong currents. A walk to shore along the half-mile-long breakwater was dangerous as well, and even impossible after ice built up on it in the winter.” Soon, though, the lighthouse will begin a metamorphosis that’s been decades in the making. Frank Sciame, the construction magnate whose eponymous company has worked on ambitious New York City projects When your US$10.4 mil mansion such as the New Museum for Contemporary Art, the High Line, and the Harvard Club, has been a co-owner of the lighthouse since 2015. Last week, he solidifi ed his control over comes with an iconic lighthouse the 49ft tower and plans this fall to begin turning it into a guesthouse for his children and grandchildren. A living room on “Historic structures are of real interest the property to me,” said Sciame, the former chairman of the New York Landmarks Conservancy. It might change — and it might take a He added that he’d been looking at the light- while. “Finally a project without a budget or a house throughout the 20 years he’s spent on deadline!” he crowed. “I’m not gonna rush.” Fenwick, the last decade from the former Nothing about the lighthouse’s recent his- estate of Katharine Hepburn, at 10 Mohegan tory has been rushed. In 2008 the National Avenue. “When it came on the market, I Park Service began trying to transfer control had to have it.” of 12 “excess” lighthouses away from the fed- And now that he’s got it, he’s going to fi x eral government and, ideally, to non-profi t, it up on his own, he said, as a “hobby”, with educational, or cultural agencies. For various the advice of restoration experts and the aid reasons — logistical, bureaucratic, political of his family. “I’ll have the young guys help — this didn’t happen, and by 2015, Sciame me,” he said. had the chance to acquire it through a Gen- First on his list is restoring the exterior, eral Services Administration auction. which has been through a serious beat- But a friend of his wanted it, too. “We ing over the course of its history. In 1938, didn’t want two guys bidding against each the lighthouse barely survived a hurricane. other, so we went partners on it,” Sciame “Everything was swept away by the hurri- explained. They won the auction with a cane except the tower,” wrote its keeper at US$290,000 (RM1.24 million) bid. the time, Sidney Gross. PHOTOS BY DENNIS M. CARBO/BLOOMBERG In the two years since, again due to what “Th ere are a couple of cracks in the ma- Sciame described as “red tape”, they haven’t sonry and in the cast-iron shell that we will done any work on the structure. Th en, fi ve be restoring and repairing,” Sciame said, months ago, Sciame’s partner put his own adding that he’ll source the cast iron from Fenwick property — a US$10.4 million com- the same resource in Alabama he used when pound connected to the breakwater, and restoring the artist Donald Judd’s SoHo loft. thus to the lighthouse — on the market. “We’ll paint it, put in new windows. Make “Imagine the Life of a Lighthouse Keeper!” sure it’s watertight.” read the listing. Sciame intends to install a generator and Th e compound included two parcels of solar panels, with shipbuilding as his inspi- land, one with an 8,000 sq ft, 5-bedroom ration. (At one point, he engaged the yacht house, the other a 2,643 sq ft, 3-bedroom designers Persak & Wurmfeld to draw up one. Both are colonial-style, with red-ce- plans for the transformation.) “It’ll be totally dar shingles that have a well-aged look, self-suffi cient,” he said. even though they were built in 2006. Th ey were available to be purchased separately, for US$7.4 million and US$3.5 million, or together for US$10.4 million. As it happened, it was Sciame himself who last week went into contract on the Inside the kitchen of one of the larger house, with an option on the smaller mansions on the compound as well. He sold the Hepburn estate, which had been on the market since March. If any of this saga has you lusting for a Inside, Sciame plans to create an entrance lighthouse of your own, well, the GSA has lobby, put an owner’s stateroom on the sec- fi ve up for auction right now. Th ey may not ond fl oor, fi ll the third fl oor with bunk beds be as iconic as Saybrook’s, but they are not for his grandchildren, and on the fourth fl oor as expensive either — the highest price list- build a salon “with a stair to a little indoor ed is US$31,000. bar that connects to the wraparound 5ft wide Th e Coast Guard, meanwhile, will main- walkway”. He said the design of the exterior tain the Saybrook light, which continues to The “sparkplug” design has adorned would remain traditional, with the interior run at night, and the foghorn. “If it’s foggy, the Connecticut licence plates since 1993 being more contemporary. “Honestly, that horn will go off ,” said Sciame. “I guess you’re might change,” he acknowledged. not gonna sleep too well!” — Bloomberg

3XEOLVKHGE\7KH(GJH3URSHUW\6GQ%KG 3 /HYHO0HQDUD./.1R-DODQ3-80XWLDUD'DPDQVDUD3HWDOLQJ-D\D6HODQJRU0DOD\VLD 3ULQWHGE\8OWLPDWH3ULQW6GQ%KG + /RW-DODQ6HSDQD2II3HUVLDUDQ6HODQJRU6HNV\HQ6KDK$ODP6HODQJRU0DOD\VLD