BUDGET 2019 EDITION

by Henry Butcher

BUDGET 2019 AND ITS IMPACT ON THE PROPERTY INDUSTRY IN MALAYSIA

PLUS When The Going Gets Tough, : Dip in New Value Map Series: KDN PP18893/11/2015(034373) Seek Wisdom Launches in H1 2018 (North) BUDGET 2019 EDITION

by Henry Butcher Malaysia

BUDGET 2019 AND ITS IMPACT ON THE PROPERTY INDUSTRY IN MALAYSIA

PLUS The Pursuit Of Opulence With Selangor New Launches 8alue Map Series: KDN PP18893/11/2015(034373) Ritz Carlton Residences, KL H1 2017 vs 2018 Puchong (North) BUDGET 2019 EDITION Editor’s Note

by Henry Butcher Malaysia

Publisher Henry Butcher Malaysia Sdn Bhd 25, Jalan Yap Ah Shak, O Jalan Dang Wangi, 50300 . T• (03) 2694 2212 E• [email protected] W• www.henrybutcher.com.my

OUR SERVICES Valuation I recently attended a seminar conducted by take-up rates for those developments Tel :603-26942212 Fax: 603-26943484 Lembaga Perumahan dan Hartanah which are not conducive for the lower Email: [email protected] Selangor (Housing and Property Board, income households, the issue of mainte- Project Marketing Selangor) on the launch of their latest nance charge collection, the issue of Tel: 603-26942212 Fax: 603-26925771 policy guidelines on “a ordable housing “ amenities and facilities for the open Email: [email protected] in Selangor titled “Dasar Perumahan dan market household and the “a ordable” Real Estate Agency Hartanah Mampu Milik Selangor 2.0”. household. Tel: 603-26942212 Fax: 603-26941261 Aer 4 years in existence since January Email: [email protected] 2014, this is an update of the previous Malaysia is probably one of the few Market Research & Development Consultancy housing policy of the State known as countries in the world that have shied the Tel: 603-42702072 Fax: 603-42702082 “Rumah Selangorku”. responsibility of social housing to the Email: [email protected] private sector. e policies on “a ordable is updated policy have some changes of housing” for each state di ers but these Retail Consultancy Tel: 603-91305550 Fax: 603-91304003 which the rst was the reduction of regulatory housing have pushed the open Email: [email protected] provision of “a ordable housing” in market housing sector to unsustainable Selangor from 50% to 40% for projects levels. It seems now that not only the B40 Facilities & Asset Management Tel: 603-62053330 Fax: 603-62062543 with land areas of more than 25 acres. e and M40 cannot a ord to buy houses, but Email: [email protected] next change was the reduction in built-up those outside these bands are also facing of the units priced at RM200,000 from very tough challenges to a ord the open Plant & Machinery Consultancy Tel: 603-26942212 Fax: 603-26943484 1,000 sq  per unit to 900 sq . e next market housing. Most developers would Email: [email protected] was an additional type of “a ordable nd diculty to reduce house prices house” that is type “E” introduced into because there are many factors that a ect Auctions & Tender Sales selected areas which are MBPJ (Majlis the selling prices (high selling prices). Tel: 603-26942212 Fax: 603-26941292 Email: [email protected] Bandaraya ), MPAJ (Majlis Over the past decade, it can be seen that Perbandaran ) and MPSJ developers’ prots have eroded against Art Consultancy (Majlis Perbandaran ). is high land cost, high development expens- Tel: 603-26913089 Fax: 603-26021523 Email: [email protected] type "E" home is priced at RM250,000 with es, competition, mandatory housing, built-up area of 900 sq . is concession depleting gross developable land etc, and is to provide a ordable housing for the two major contributors of high develop- OUR OFFICES most urban location of the State at a price ment cost from the authorities side are the | SELANGOR | Subang Jaya • Ampang • Mont’ Kiara | which is more inline with an urban development charges (such as utility NEGERI SEMBILAN | | KEDAH| Alor Setar • Kulim | PENANG| Island • Butterworth • Seberang location. charge rates) and mandatory “a ordable Perai | JOHOR | Johor Bahru • Kluang • Muar • Pontian | h o u s e s”. PAHANG | Kuantan | MALACCA | Melaka | TERENGGANU | Kuala Terengganu | PERAK | Ipoh e State also has guidelines to provide | KELANTAN | Kota Bahru | SABAH | Kota Kinabalu a ordable service apartments, a ordable Developers now, in Budget 2019 are • Sandakan • Tawau | SARAWAK | Kuching • Miri SOHO/SOFO/SOVO in open market expected to reduce selling prices by 10% oriented developments with no due and given the above constraints many diligence on market demand for these developers will be hard pressed to give mandatory a ordable units, given that any these discounts on top of other rebates that PAST EDITIONS development of serviced apartments and they have already given. SOHO/SOFO/SOVO have to provide 2018 a ordable units within their development. A ordable housing is a problem not only e question is raised with regards to in Malaysia but also many other developed demand from the market place (the M40 countries in the world. By forcing develop- group) for these a ordable units. When a ers to be the key drivers of these social developer builds these types of develop- housing should not be the main way of ments they would have studied the open producing the numbers the government is market with regards to demand, target targeting for. Even the numbers of a ord-

Feb 2018 Mar 2018 Apr 2018 May 2018 markets and selling prices etc, and then able housing that have been announced is decide to do the project if their analysis is questionable as to how are these numbers positive. By forcing developers to provide generated and if the demand is so high why “a ordable” units within their develop- are there so many unsold units of a ord- ment, the State can expect to have able housing still available? problems amongst which are with sales or Fahariah Abdul Wahab Jun 2018 Jul 2018 Aug 2018 Sept 2018 Director

Printed by: Percetakan CL Wong Sdn Bhd AS-84, Jalan Hang Tuah 4, Taman Salak Selatan, 57100 Cheras, Kuala Lumpur. 1/ HERALD BUDGET 2019 EDITION Birth of the “Introduction To Property The 3-day in-house course itinerary is 3-day in-house course itinerary is packed Development” Course packed with property development with property development wisdom, wisdom, among others topics such as among others topics such as Property Due to the changing market trend and to Property Development Activity Flow, Development Activity Flow, Introduction bridge the gap for would-be developers Introduction to Land Laws & Land to Land Laws & Land Dealings, Evalua to be part of the game, a specially curat- Dealings, Evaluation of Property Devel- ed course on “Introduction to Property opment (Market & Feasibility Studies) The Course is designed for the junior and Development 101” was recently put and the likes were imparted with positive mid management sta of di ering together and conducted by our Henry feedback from the participants. At the backgrounds, disciplines and depart- Butcher Ampang oce. The key objec- end of the course, participants would ments. As many in-house talents are new tives of the course was to share the also gather in groups for a practical or have limited knowledge about the property development process to session called the Property Development property industry, this Course can help enhance the understanding on how each Scenario Exercise to test and apply what better understand the terminology of the and every process relates to one and they have just learnt. They would bounce industry, authority requirements and another, not forgetting the where’s and o ideas and decisions from assessing processes, the key inputs in the value how’s of every process fit into the entire the feasibility of a sample land to crafting chain, decision making tools of the value chain. go-to-market strategies and the possible industry, major considerations in proper- action plans to unlock its value. ty development and a host of other Designed and presented by specialists essential development factors. with extensive hands-on experience in the di erent facets of the industry made Niche and Dedicated As one of the participants put it, the up of a lawyer, planner, valuer, property Course has presented everyone with “A market consultant, financial advisor and As can be observed, the human capital clear walkthrough of the model for marketing and branding consultant, the development market is swamped with Financial Assessment.” And because BUDGETinaugural course was presented to a conferences2019 on property market trends every business runs and thrives with a select client not too long ago. The and specific development topics such as sound financial outcome, it makes a lot ANDresponse, priceless. ITS IMPACTurban ON planning THE and design, PROPERTY infrastruc- of sense then toINDUSTRY invest just three days for ture and building engineering solutions, a longer term reward in one’s property “Good, lots of details and sharing of property market outlook etc. These development journey. experience for Methods of Valuation,” large-scale conferences and classes are INsaid MALAYSIAone participant while another good for keeping abreast with the latest praised for the “Informative with good trends and technologies whilst providing presentation skills and knowledgeable great opportunities for industry to 2ndfor Novemberthe Planning 2018 Process.” marked the first time comparednetwork but to thea more 5.9% growthstrategic achieved and The in enhanced accessibility as well as investors in 60 years that the country’s budget was 2017. This is against the backdrop of a or homebuyers who have invested in a presented by a Finance Minister who is slower global economic growth of 3.7% in property located near the proposed not from the Barisan Nasional govern- both 2018 and 2019. stations along these lines in the hopes of ment and the first time in 20 years that enjoying strong capital appreciation when the Finance Minister who presented the In view of the less favourable financial these rail lines become operational. budgetHenry was not Butcher at the same Ampang time, the now situation holds ofthe the country, several major Prime Minister of the country. This would infrastructural projects have either been Budget 2019 did not o er much in terms probably“Introduction not have been possible on Property if not for Development”,cancelled or postponed eg. the Mass of the goodies hoped for on the property the astonishing the Course outcome of GE14 on the Rapid Circle Line (MRT 3) and the Kuala developers’ wish list which will help to 9th of May 2018 when the then opposition Lumpur-Singapore High-Speed Rail (HSR) stimulate the current sluggish property Pakatan• Property Harapan Development coalition came Activity up Flow.due to the inability of the government to market. Nevertheless, the budget can be winners in the election. fund such projects. Nevertheless, the described as mildly positive as it did • Introduction to Land Laws & Landgovernment Dealings. has decided to move ahead contain some goodies although they were In his •maidenEvaluation Budget of Propertywhich carried Development the with some other projects eg. Sungai o set by some additional tax burdens. theme "Credible(Market Malaysia,& Feasibility Dynamic Studies) Econ- ValuationBuloh-Serdang- Methods & (SSP Line) MRT omy, Prosperous Rakyat", Finance Minis- 2 after the cost has been reduced by 23% The main thrust of the budget was on the ter YB LimProcess. Guan Eng, unveiled a budget and Light Rail Transit 3 (LRT 3) where the lower to middle income groups as the which •wasFinancial less painful Assessment than expected, of Property cost Development. has been slashed by 47%. At the a ordable housing sector once again took after rumoursDevelopment of a tough Implementation budget with new (Financialsame time, & the Valley double track centre stage. The following are the key taxes floated around in the weeks leading project, will be retendered on an open budget highlights which have an impact to the tablingTechnical of the Parameters Budget. and Legal Parameterstender basis ofwhere it is hoped that the on the property sector. Business Models). cost can be brought down significantly In the Budget, the Finance Minister before the project is carried out. This is Market Development, Marketing, Branding & Sales. revealed• that the Malaysian economy is certainly sweet news to property develop- projected to grow at a slower pace of ers who have purchased land along these 4.8%For morein 2018information and on4.9% the Coursein 2019 and ashow torail unlock lines the to value take of youradvantage of the land, please contact [email protected] or call +603 42702072

2 / HERALD BUDGET 2019 EDITION 3 / HERALD OCTOBER 2018 • An allocation of RM1.5 billion will be set aside for the building of a ordable homes.

• A further sum of RM1 billion will be provided via Bank Negara Malaysia to help first time home buyers with monthly incomes of less than RM2,300 to finance their purchase of homes costing • The Sales and Service Tax (SST) will be extended less than RM150,000 at a lower to foreign service providers. interest rate of 3.5%. Henry Butcher: • An allocation of RM25 million by Cagamas will be This means that companies engaging foreign consul- used to provide mortgage guarantees for first time tants like architects will have to pay more and the home buyers with monthly household incomes of government hopes that this will lead to more jobs less than RM5,000. going to local consultants

• There will be a stamp duty exemption on the first RM300,000 on the Sale & Purchase Agreement and Loan Agreement for first time purchasers of homes • In consideration for the exemption of building costing RM500,000 and below for a period of two materials from SST, the real estate and housing years till end 2020. developers’ association (REHDA) has pledged that developers will reduce the cost of houses by at least 10%. Henry Butcher: The above measures are expected to fuel demand for Henry Butcher: housing in the a ordable price segment. The substantial allocation of RM1.5 billion for the building of a ordable We have to point out that there are a multitude of homes is indeed welcoming news for those in the lower factors which influence how property developers to middle income groups who have not been able to price their properties. Cost is obviously a major purchase their dream home amidst the rapid rise in consideration but demand as evidenced by the sales house prices over the past five years. Nevertheless, it is take-up rate is also a factor which a developer will noted that a similar allocation of RM1.5 billion was not ignore. As it is, even without the SST exemption, announced in Budget 2018 by the previous administra- developers are already giving discounts, rebates and tion but due to weaknesses in implementation, the other goodies besides easy payment schemes and a ordable homes targets were never met. With new even developer financing schemes to lure buyers. To hands on deck, it is anticipated that the cherished hopes really attract buyers, the proposed 10% price reduc- of the lower- and middle-income groups of owning a tion will have to be over and above what the develop- home can now be fulfilled. ers are currently o ering to the buyers.

• To alleviate the huge overhang of unsold houses, there will also be a six months stamp duty exemption • The Real Property Gains Tax (RPGT) structure will on the first time purchase of homes costing between be amended such that locals as well as permanent RM300,000 and RM1 million. residents will now be levied a tax of 5% (previous- . ly 0%) if the sale of property takes place after the Henry Butcher: fifth year. For non-citizens who are not permanent Although the impact is not expected to be substantial, residents as well as companies, the tax rate will be the foregoing two measures will help to revive interest to set at 10% (previously 5%). Low cost, low medium a certain degree in the current sluggish housing market. cost and a ordable houses costing RM200,000 and below will be exempted.

Henry Butcher: • The stamp duty on transfer of property above RM1 The objective of RPGT is to deter short term specula- million will be raised from the current 3% to 4%. tive activities and therefore penalises the people who flip the properties after a short period of owning Henry Butcher: them. Although the tax rate of 5%/10% is not This is a dampener for the high-end market as it increas- substantial and will probably not deter people from es the acquisition costs for buyers of properties in this continuing to buy properties, it is our view that genu- market segment which is already seeing slow sales. ine buyers who have held the properties for a long period of time such as five years and more should not be penalised. In this case perhaps the government could introduce a new tier and limit the 5%/10% tax on those who own the property for less than 7 or maybe 10 years. Those who dispose of their proper- ties after ten years should be exempted from any RPGT.

3 / HERALD BUDGET 2019 EDITION • Peer-to-Peer Lending Scheme – The government will allow the private sector to set up crowdfund- ing platforms to enable buyers to own a property • The Government has also announced plans to hold with just a 20% down payment with the balance scheduled and staggered sales of land via 80% to be raised from contributors. There will be auctions to the highest bidders to generate no mortgage repayments or interest payments for revenue. a period of five years after which the property owner can refinance his property if he decides to Henry Butcher: stay on or to sell his property if he decides not to Hopefully this will increase the supply of landbank for keep it. More details on this P2P scheme is needed housing development and help to keep a cap on to assess its attractiveness and viability. Neverthe- rising land costs in the major towns. less based on the FundMyHome platform which was launched after the Budget announcement, it was mentioned that if the property is sold after the five year period, the contributors and owner will firstly get back their capital after which, the • Khazanah Malaysia will be entrusted to develop surplus will be distributed between the contribu- an 80-acre site located in Subang into a world tors and the owner. The contributors will get a standard aerospace hub. first cut amounting to 20% of the surplus whilst the balance 80% will be distributed between the Henry Butcher: owner and the contributor in the ratio of 20:80. A This aerospace hub is expected to generate employ- security agent will hold the property as security. ment opportunities and create demand for housing as well as shops to support commercial activities. Henry Butcher: This is a very interesting and innovative scheme to boost home ownership but as this is the first such a • The Government will also designate a 380 acres scheme is being implemented, there are many grey site in in Selangor as a Free Trade areas which need to be addressed such as the cost of Zone to support the shipping and logistics running these crowdfunding platforms, the criteria business in . for qualifying as a buyer under the scheme, how properties are evaluated and accepted into the Henry Butcher: scheme as well as how risks are mitigated for contrib- This augurs well for not only the shipping and utors. Further, it is quite common for buyers in the logistics industries but will at the same time provide low- and middle-income groups to apply for a 90% opportunities for property development activities loan margin as they do not have sucient savings to such as housing schemes and commercial centres in pay more than 10% of the purchase price and it may Pulau Indah and Port Klang. be dicult for these groups to come up with a 20% down payment. In fact, to lure such buyers, develop- ers are o ering zero down-payment or easy entry • The Government will turn Pulau Pangkor into a schemes which do not require the buyers to come up Free Trade Zone. with much upfront payments. Lastly, as it is some- thing new, the man on the street would need some Henry Butcher: time to understand and digest the scheme and a lot This is expected to provide a big boost to tourism on of hand holding before they dare to take the plunge the island and lead to more commercial properties and sign up as a contributor. being developed besides hospitality and leisure related developments such as theme parks and hotels. • The government has announced plans to set up the world’s first “Airport Real Estate Investment Trust” (REIT) into where the assets of Malaysia Airports Holdings Berhad (MAHB) will be injected. MAHB will be given concessions to operate these airports whilst investors of the REIT will receive Overall, Budget 2019 may not have a lot of goodies for the income arising from user fees collected from property sector but the positive growth of 4.8% and 4.9% in MAHB. The government hopes to raise RM4 billion 2019 and 2020 respectively is supportive of a stable property from this exercise market. The larger budget deficit may temporarily a ect the country’s financial standing and international credit rating Henry Butcher: agencies’ evaluation of Malaysia but the greater transparency The REIT will provide not only institutional but also and determination of the government to clean up the excesses retail investors a rare opportunity to invest in quality and wrongdoings of the previous administration and the steps infrastructure assets and benefit from the growth of being taken to put the country’s economy on a sound and the aviation industry. Nevertheless, the setting up of firmer footing augurs well for the future of the nation and we this REIT is announced at the same time as the certainly look forward to all these measures leading to a speed- levying of a tax on international departures which ier but more orderly recovery of the property market. may, although in our view, will probably not a ect much, the number of international travellers depart- ing from our airports.

4/ HERALD BUDGET 2019 EDITION WHEN THE GOING GETS TOUGH, SEEK WISDOM With real estate development playing a The proverbial iceberg will then slowly decades to master the trade, new talents key role in the nation’s economic growth, unveil itself. As if su ering from the heat on board now has an uphill battle to existing property development business- of global warming, the iceberg melts to chase after the clock other than chasing es have been on an expansion mode with uncover the many permutations one has the new promotions appearing ever so many existing and new land bank owners to understand before reaching the holy regularly on the social media channels. entering the market to capitalise on the grail. But as high talent turnover in the But of course, the real deal of the game opportunities presented. property industry has been a costly extends far beyond pop-up advertise- a air, the costs of hiring newbies may ments and this includes the many In tandem with the rise of this potential not be as prudent as one might have disciplines, the processes and functions income stream, attracting and retaining thought given that time is the ultimate of key elements in the property develop- capable talents who understand the sacrifice a company has to endure before ment SOP’s, the timeline of develop- value chain of the property development these new babies become fully familiar. ments, the financial models involved and business has also suddenly become an The stress is in fact double if the the legal issues surrounding the develop- imperative requirement. But the management team themselves are ment business, and more. challenge to hire the right people is only inexperienced or completely new to the beginning of an arduous journey, property development. especially for corporations whose core business has never been in property What has taken seasoned hands and development. captains of the industry years and

5/ HERALD BUDGET 2019 EDITION Birth of the “Introduction To Property The 3-day in-house course itinerary is dedicated course specifically for the Development” Course packed with property development organisation. Hence, the birth of the wisdom, among others topics such as “Introduction to Property Development” Due to the changing market trend and to Property Development Activity Flow, Course. bridge the gap for would-be developers Introduction to Land Laws & Land to be part of the game, a specially curat- Dealings, Evaluation of Property Devel- The Course is designed for the junior and ed course on “Introduction to Property opment (Market & Feasibility Studies) mid management sta of di ering Development 101” was recently put and the likes were imparted with positive backgrounds, disciplines and depart- together and conducted by our Henry feedback from the participants. At the ments. As many in-house talents are new Butcher Ampang oce. The key objec- end of the course, participants would or have limited knowledge about the tives of the course was to share the also gather in groups for a practical property industry, this Course can help property development process to session called the Property Development better understand the terminology of the enhance the understanding on how each Scenario Exercise to test and apply what industry, authority requirements and and every process relates to one and they have just learnt. They would bounce processes, the key inputs in the value another, not forgetting the where’s and o ideas and decisions from assessing chain, decision making tools of the how’s of every process fit into the entire the feasibility of a sample land to crafting industry, major considerations in proper- value chain. go-to-market strategies and the possible ty development and a host of other action plans to unlock its value. essential development factors. Designed and presented by specialists with extensive hands-on experience in Niche and Dedicated As one of the participants put it, the the di erent facets of the industry made Course has presented everyone with “A up of a lawyer, planner, valuer, property As can be observed, the human capital clear walkthrough of the model for market consultant, financial advisor and development market is swamped with Financial Assessment.” And because marketing and branding consultant, the conferences on property market trends every business runs and thrives with a inaugural course was presented to a and specific development topics such as sound financial outcome, it makes a lot select client not too long ago. The urban planning and design, infrastruc- of sense then to invest just three days for response, priceless. ture and building engineering solutions, a longer term reward in one’s property property market outlook etc. These development journey. “Good, lots of details and sharing of large-scale conferences and classes are experience for Methods of Valuation,” good for keeping abreast with the latest said one participant while another trends and technologies whilst providing praised for the “Informative with good great opportunities for industry to presentation skills and knowledgeable network but a more strategic and for the Planning Process.” valuable approach was to have a

Henry Butcher Ampang now holds the “Introduction on Property Development”, the Course Content in Brief • Property Development Activity Flow. • Introduction to Land Laws & Land Dealings. • Evaluation of Property Development (Market & Feasibility Studies) Valuation Methods & Process. • Financial Assessment of Property Development. Development Implementation (Financial & Technical Parameters and Legal Parameters of Business Models). • Market Development, Marketing, Branding & Sales.

For more information on the Course and how to unlock the value of your land, please contact [email protected] or call +603 42702072

6/ HERALD BUDGET 2019 EDITION Selangor: Dip in New Launch in H1 2018 Landed H1 2017 vs 2018 by Henry Butcher Research

SUNGAI BULOH Landed RM300 - RM400 PROJECT1 psf

PETALING JAYA Highrise RM800 - RM1200 PROJECT3 psf

SETIA ALAM Landed RM300 - RM550 PROJECT3 psf

SHAH ALAM Landed RM300 - RM550 KLANG PROJECT1 psf Landed RM300 - Highrise RM600 RM700 PROJECT1 psf - RM800 PROJECT1 psf Total Number and Total Units of Project

40 Highrise PUCHONG 30 RM700 - Highrise RM800 RM500 20 PROJECT psf -

Projects 1 RM650 PROJECT2 psf 10

0 2017 2018 Number of new project launches

16,000 Total Launch by Month

12,000 12 14

10 8,000 9 Units

6 8 4,000

3 4

0 2017 2018 0 0 January February March April May June Number of units launched in new projects Semi-D Bungalow Townhouse Soho/ Sofo/ Condominium Sovo/ Soso Apartment/ Flat Apartment/ Flat Serviced Residence / Serviced Apartment

7/ HERALD BUDGET 2019 EDITION N Based on our analysis of the data compiled by us,, the first half of 2018 witnessed a dip Price Per Unit Sizes Pricing in the number of new launches in Selangor $ Square Feet* as opposed to the same period the previous Yearly New Launches< 1,000sf year. In 1H 2017, there were a total of 37 new < RM400,000 < RM500 projects launched but in 1H 2018, there were 30% 21% just 23 new projects launched. This 9% 3% 6% 3% represents a drop of close to 38% and could 1,001sf - 1,500sf be due to developers in the state adopting RM401,000 - RM600,000 RM501 - RM750 Statistica more cautious approach in view of the in Selangor softer market conditions. Also, due to the 18% 26% land availabilities in this state region, there 18% 31% 42% 34% H1are generally 2017 a fair share vs amount 2018 of both 1,501sf - 2,000sf landed and strata properties, whereby 49% RM601,000 - RM800,000 byand Henry 51% ofButcher high rise Research and landed projects in 14% 24% RM751 - RM1,000 2017 respectively, and 48% and 52% in 2018. 2,001sf - 2,500sf 23% 27% 38% 39% In terms of number of units, we observed an even larger decline of 60%. LandedFor 1H 2017, RM200 15% 19% there were a total of 15,697 units launched RM1,001 - RM1,500 - RM801,000 - RM1,000,000 in new projects, but for 1H 2018, the figure RM250 2,501sf - 3,000sf declined to a mere PROJECT16,235 units.psf Strata High-rise8% 16% properties were still more popular for both 23% 23% RM600 2017 and 2018 as our data shows 67% (out 8% 5% - of the total SUNGAIof 6,235 BULOH units) were strata RM800 Above RM1,500 Landed Above RM1,000,000 projects in 2018, and 78% (out of the total of 3,001sf - 3,500sf PROJECT1 psf 15,697 units) in 2017RM300 respectively.Of the newPETALING JAYA 6% 8% projects launched in 1H- 2018, there were no Highrise5% 5% apartment/flat andRM400 bungalow projects RM800 27% 16% PROJECT1 psf Above 3,500sf BANDAR MAHKOTA launched. In addition, our data reveals that - CHERAS the majority of the projects launched in the RM1200 High-rise first six-monthSETIA period ALAM in 2018 comprisedPROJECT3 psf 10% 0% RM450 service apartments Landed(30%) and terrace/su- - perlinks projects (52%).RM300 RM600 - PROJECT1 psf March appeared toRM550 be the most active better suited for families or home upgrad- to RM 750 per sq ft (34%). It tapered o PROJECT3 psf month in 2017 with a total of 12 projects ers; which brings to the next factor that is to from there, with the number of projects launched before it recorded a gradual look at the price perspective. oering units exceeding RM751SEMENYIH per sq ft declineSHAH up ALAM until June 2017. In contrast, decreasing, culminating in only 6% Landedoering February andLanded June of 2018 recorded the Based on an analysis of our data on new units exceeding RM1,500 per sq ftRM300 in 2017 most number,RM300 with 7 projects launched in launches, we noted that approximately 31% and 8% in 2018, respectively. - each month. Interestingly,- KLANG May 2018 marked of the new projects launched in 1H 2018 RM500 RM550 PROJECT1 psf the slowest month for new launches due to oered units withinBANDAR the SUNWAY RM 400,000 to appeared to be the develop- PROJECT1 psf Landed the higher sense of uncertaintyRM300 during the RM600,000 price bracket, followed by 27% ers’ focus in 1H 2017 as our data showed a Highrise PUTRAJAYA GE14 period. Perhaps, with a more- optimis- within the price bracket ofRM700 RM 600,000 to total of 4 projects launched in the area. tic post-electoral outlook,RM600 developers RM800,000. In 2017, the percentages- were Apart from Sungai Buloh, HighriseKlang comes in regained their momentumPROJECT1 in thepsf sector as 18% and 23% respectively.RM800 Whilst 1H 2017 closely with 3 projects. InRM700 1H 2018, the KOTA KEMUNING our data showed a significant jump from the saw 27% of the projectsPROJECT1 withpsf units priced at interest appeared to have- shifted to slow months during the election period. RM 1m andHighrise above, 1H 2018 saw the figure Petaling Jaya and SetiaRM800 Alam as our drop toRM700 only 16% findings reported 3PROJECT 1new projectpsf launches With regards to size of the units launched, - PUCHONG each in these areas. This is followed closely RM800 we noted that in 1H 2017, most of the units Based on our analysis, approximatelyHighrise 42% by , , SEPANGPuchong and Klang PROJECT1 psf launched have built-up areas of below 1000 of the units in 1H 2017 were priced within with 2 projects launched in each of these RM500 Landed Totalsq Number ft and between and Total 1,001 Units to 1,500 of Project sq ft. In the RM 501 to RM 750 per sq ft bracket- with areas. RM300 2018, we found that projects launched in another 38% within the range of RM650RM 751 to 38 - the first half oered more spacious units RM 1,000 per sq ft. The trendPROJECT2 continuedpsf in RM550 coming in between 1,001 to 1,500 sq ft (11 1H 2018, where the majority of projects PROJECT2 psf projects)29 and 1,501 to 2,000 sq ft.(10 were oered at between RM 751 to RM 1,000 per sq ft (39%), followed by RM 501 projects). The return to larger units are CYBERJAYA

19 Highrise Landed Projects RM500 RM400 - - 10 Strata and Landed StrataRM600 andRM500 Landed PROJECT2 psf psf by Units by Projects

0 2017 2018 Number of new project launches

16,000 2017 2018 2017 2018 Total Launch by Month Types Of Projects

12,000 12 14 % % % % 2 3 9 8 2 3 4 4 11 8,000 9 Units 15,697 6,235 UNITS UNITS 37 23 6 PROJECTS7 PROJECTS 4,000 % % 1% % 78 67 5 52 3 4

0 Strata Strata Highrise Highrise 2017 2018 0 0 Landed January FebruaryLanded March April May June Landed Apartment/ Flat Landed Semi-D Terrace/ Super Link Number of units launched in new projects

8/4 / HERALD HERALD BUDGET OCTOBER 2019 2018 EDITION Selangor: Dip in New Launches in H1 2018 Twinz Based on ourKon analysis of the data compiled Kinrara Low N by us,, the firstKinrara half of 2018 witnessed a dip Cost Kinrara Court Price Per KinraraUnit SizesRia Pricing in the number of new launches in Selangor $ Square Feet* Villamas asAtmosfera opposed to the same period the previous Palm year. In 1H 2017, there were a total of 37 new < 1,000sf Terrace Zefer Kinrara Sri < RM400,000 < RM500 Yearlyprojects launchedHill but in 1H 2018, thereNewOhako were Launches*Palm Ville 30% Putri Sunway21% just 23 new projectsImpian launched. This 9% 3% 6% 3% representsSri Bayu a drop of closeHeights to 38% and could 1,001sf - 1,500sf be due to developers in the state adopting Taman RM401,000 - RM600,000 RM501 - RM750 a more cautious approach in view of the Vista Kinrara Suria IMPIAN HEIGHTS Koi Lavender Kinrara softerParc Ville market conditions. Also, due to the 18% 26% Statisticland availabilities in this state region, there Legianin Selangor 18% 31% 42% 34% are generally a fair share amountSri of both 1,501sf - 2,000sf landed and strata properties, wherebyCempaka 49% Puchongmas 14% RM601,000 - RM800,000 H1and 51% 2017 of high rise and vs landed projects2018 in 24% RM751 - RM1,000BUKIT JALIL 2017 respectively,Sri and 48% and 52% in 2018. by Henry ButcherAnggerik Research 2,001sf - 2,500sf TAMAN TENAGA Mayang 27% 38% In terms of number of units, we observed an Kesuma 23% 39% KLH SELAYANG evenApartment larger declineSri Kenanga of 60%. For 1H 2017, 15% 19% The there were a total of 15,697 unitsLanded launched Zest RM1,001 - RM1,500 Avilla Sri RM801,000 - RM1,000,000 in new projects, but for 1H 2018,RM200 the figureTeratai Seri declined to a mere 6,235 units.- Strata 2,501sf - 3,000sf 8 Kinrara BANDAR KINRARAKasturi 5 SERI KEMBANGAN 16% propertiesBANDAR were still moreSri popularRM250 for both 23% 23% 8% 2017 and 2018 as our Mekar PROJECTdata1 showspsf 67% (out 8% 5% High-rise *Skyz D’Cahaya of the total of 6,235 units) were strata RM600 Above RM1,500 projects in 2018, and 78% (out of the total of Above RM1,000,000 - SUNGAI BULOH 3,001sfBANDAR - 3,500sf 15,697 units) in 2017 respectively. Of the RM800 Landed Vistaria KINRARA 5 PROJECT1 psf6% 8% TAMAN PUNCAK KINRARA new projects launchedRM300 in 1H 2018, therePETALING JAYA5% 5% were no apartment/flat and bungalowTaman Puncak 27% 16% - Highrise projects launched. In addition, our data Above 3,500sf RM400 KinraraRM800 10 revealsSkyPod that PROJECT1the majoritySutramaspsf of the projects Kinrara BANDAR MAHKOTA - launched in the first six-month period in RM120010%Melur 0% CHERAS PUNCAK High-rise 2018 comprisedSETIA service ALAM apartments (30%)PROJECT3 psf Sri Kesidang RM450 and terrace/superlink projects (52%). KINRARA BANDAR Landed Sierra - Enggang RM300 KINRARARM600 6 March appeared to be the most active - Based on an analysis of our data on new Sungai Buloh appeared to be PROJECTthe1 developpsf - month in 2017 with a total of 12 projects launches, we noted that approximately 31% ers’ focus in 1H 2017 as our data showed a RM550 HENING *Duet Taman launched beforePROJECT3 it psfrecorded a gradual ofRimba the new projects launched in 1H 2018 total of 4 projects launched TAMANin the area. Damai decline up until June 2017. In contrast, oered units within the RM 400,000 to Apart from Sungai Buloh, KlangSEMENYIH comes in DAMAI UTAMA Utama FebruarySHAH and ALAM June of 2018 recorded the RM600,000 price bracket, followed by 27% closely with 3 projects. In 1H 2018,Landed the PUCHONGmost number, with 7 projects launched in Landed within the price bracket of RM 600,000 to interest appeared to have shiftedRM300 to each month.RM300 Interestingly, May 2018 marked RM800,000. In 2017, the percentages were Petaling Jaya and as- our KINRARA the slowest month for new launches due to findings reported 3 new project launches - KLANG 18% and 23% respectively. Whilst 1H 2017 RM500 the higher RM550sense of uncertainty during the saw 27% of the projects with units priced at each in these areas. This is followedPROJECT1 psfcloselyRESIDENCE BANDAR SUNWAY GE14PROJECT1 period. psfPerhaps, with a moreLanded optimis- RM 1m and above, 1H 2018 saw the figure by Sepang, Cyberjaya, Puchong and Klang RM300 tic post-electoral outlook, developers drop to only 16% Highrise with 2 projects launchedPUTRAJAYA in each of these regained their momentum in the- sector as RM700 areas. RM600 Highrise LEGENDour data showed a significant jump from the Based on our analysis, approximately- 42% PROJECT1 psf RM800 SUNGAI BULOH RM700 4 slow months during the election period. ofKOTA the KEMUNING units in 1H 2017 were priced within - Under PROJECT1 psf KLANG 3 Construction Completed the RM 501 to RM 750 per sq ft bracket with Highrise SERI KEMBANGAN RM800 2 With regards to size of the units launched, anotherRM700 38% withinQUICK the STATS range of RM 751 to PROJECT1 psf 2 we noted that in 1H 2017, most of the units RM 1,000 -per sq ft. The trendPUCHONG continued in Price (PSF) PUCHONG 2 launched have built-up areas of below 1000 1H 2018,RM800 where the majorityBuilt-Up of (SF) projectsPrice (RM PSF) Highrise CYBERJAYASEPANG 2 sq ft and between 1,001 to 1,500 sq ft. In werePROJECT1 oeredpsf at between RM 751 to RM 2018, we found that projects launched in Maximum 1,730RM500 800 SEPANG Landed 2 TotalBelow Number 200 201- and 400 Total401 Units - 600 of Project601 - 800 Above1,000 800 per sq ft (39%), followed by RM 501 - SETIA ALAM 2 the first half oered more spacious units to RM 750 per sqMinimum ft (34%). It577 taperedRM650 o185 RM300 coming38 in between 1,001 to 1,500 sq ft (11 from there, with the number of projects BANDAR SUNWAY - 2 Median PROJECT21,002 psf 381 projects) and 1,501 to 2,000 sq ft.(10 oering units exceeding RM751 per sq ft RM550 2 * = Askingprojects). price The return to larger units are KOTA KEMUNINGPROJECT2 psf 2 29 decreasing, culminating in only 6% oering better suited for families or home upgrad- units exceeding RM1,500 per sq ft in 2017 PUTRA HEIGHT 2 ers; which brings to the next factor that is to and 8% in 2018, respectively. CYBERJAYA SUBANG 2 AMPANG 1 look19 at the price perspective. Highrise Landed Projects RM500 RM400PUTRAJAYA 1 - KOTA- SELANGOR 1 10 Strata and Landed Strata and Landed RM600 RM500SHAH ALAM 1 PROJECT2 psf psf CHERAS 1 by Units. by Projects. SUBANG JAYA 1 0 2017 2018 1 Number of new project launches RAWANG 1 2017 2017 1 16,000 22% 78% Total Launch 51%by Month 49% Types Of ProjectsPETALING JAYA 3 SETIA ALAM 3 12,000 12 14 SEPANG 2 CYBERJAYA 2 11 (NORTH) 9 8,000 KLANG 2 Units 2018 2018 PUCHONG 2 6 7 puchong – tremendous growth since the 1990’s 1 4,000 SERI KEMBANGAN 1 By Henry Butcher Research and3 Valuation 4 33% 67% 52% 48% KOTA KEMUNING 1

0 1 2017 2018 0 0 January February March April May June Apartment/ Flat BANDAR SUNWAY Semi-D 1 Terrace/ Super Link Number of units launched in Strata Highrise RAWANG 1 new projects Landed Landed SUNGAI BULOH 1 SEMENYIH 1 PUTRAJAYA 1 OCTOBER 2018 BUDGET 2019 EDITION 4 / HERALD 9/ HERALD5 / HERALD OCTOBER 2018 LEGENDSelangor: Dip in New Launches in H1 2018 Under ConstructionBased onCompleted our analysis of the data compiled N by us,, the first half of 2018 witnessed a dip Price Per QUICK STATSUnit Sizes Pricing in the number of new launches in Selangor $ UNDER CONSTRUCTION (Built-UpSquare Feet* SF) Price (PSF) as opposed to the same periodCOMPLETED the previous (Built-Up SF) Built-Up (SF) Price (RM UNDERPSF) CONSTRUCTION (Built-Up SF) year. In 1H 2017, there were a total of 37 new < 1,000sf Minimum Maximum Maximum 2,120 1,070 < RM400,000 < RM500 YearlyBelowprojects 200 launched201- 400 but401 in- 600 1H 2018,601 there-New 800 wereAbove 800Minimum LaunchesMaximum 30%Minimum 60021% Minimum Maximum just 23 new projects launched. This 206 9% Ohako3% Residence 6% 815 3% 1,002 8 Kinrara Residence 623 1,069 represents a drop of close to 38% and could Median 1,168 475 Ohako Residence 815 1,002 1,001sf - 1,500sf Parc Ville 1226 1323 * = Askingbe due price to developers in the state adopting RM401,000 - RM600,000 Atmosfera Condominium 1,282 1,456 RM501 - RM750 a more cautious approach in view of the Parc Ville 1,226 1,323 softer market conditions. Also, due to the Residensi Puchongmas 900 _ Avilla Apartment 96918% 1,033 26% Statisticland availabilities in this state region, there in SelangorResidensi Puchongmas 900 _ 18% Ten31% Kinrara 42% 646 34% 1,281 are generally a fairD'Cahaya share Apartmentamount of both 904 1,501sf - _2,000sf Ten Kinrara 646 1,281 landed and strata properties, whereby 49% Twinz Residence 871 1,226 RM601,000 - RM800,000 and 51% of high rise *Duetand landedResidence projects in 1,02914% 1,298 24% RM751 - RM1,000 H1 2017 vs 2018 Twinz Residence 871 2017 respectively, and 48% and 52% in 2018. 1,226 by Henry Butcher ResearchEnggang Apartment 678 2,001sf - _2,500sf Kon 23% 27% 38% 39% In terms of numberKinrara of units, we observed an In this issue of our Value Map series, our focus is on the even larger declineImpian ofHeights 60%.SELAYANG Condominium For 1H 2017, 1,066 1,227 Kinrara Low15% 19%Northern part of Puchong. Puchong is located within the Atmosferathere were a total of 15,697 unitsLanded launched RM1,001 - RM1,500 Zefer Kesuma Apartment Cost 893 _ PetalingKinrara Court districtRM801,000 and - RM1,000,000is sandwiched between Petaling in new projects, but forVillamas 1H 2018,RM200 the figure Kinrara Ria declined to Hilla mere 6,235 units.- Strata 2,501sf - 3,000sf Jaya and Kuala Lumpur to the north, Subang Jaya and Kinrara Court 853 891 Palm SERI KEMBANGAN properties were still more popularRM250 for both Shah Alam to23% the west, Putrajaya23% to the south8% and Seri 16% Sri Bayu Terrace 2017 and 2018 as ourKinrara PROJECTdata1 Low shows Costpsf Flat 67% (out Kinrara646 Putri8% Sri _ 5%Kembangan to the east. In this first part ofHigh-rise our article on Palm Ville of the total of 6,235 units) were strata Sunway Puchong, we will cover the areas encompassingRM600 Above Bandar RM1,500 Impian - projects in 2018,SUNGAI andKinrara BULOH Heights78% Putri (out Apartment of the total of 786 797 Puchong Jaya, AboveBandar RM1,000,000 Kinrara and the surrounding 3,001sf - 3,500sf RM800 15,697 units) in 2017Landed respectively. Of the Tamanneighbourhoods. 8% Kinrara Ria Apartment 807 Vista 926 Suria PROJECT1 psf6% new projects launched in 1H 2018, there Kinrara IMPIAN HEIGHTS RM300 DuaPETALING JAYA5%Lavender 5% Kinrara were no apartment/flat and bungalow Puchong was27% established 16%in the early 1900’s and KLH- Apartment Menjalara Highrise904 1,012 projects launched. RM400In addition, our data Above 3,500sf flourished due to tin mining activities but its develop- Medan RM800 reveals that PROJECT1the Koimajority Kinrarapsf Condominiumof the projects 1,063 1,221 ment and urbanisation only started around 1985BANDAR after MAHKOTA the Putra - launched Sriin the first six-month period in 10% 0% CHERAS RM1200 tin mining leases expired and small housingBUKIT schemes High-riseJALIL 2018 comprisedAnggerikSETIA serviceKoi ALAM Legian apartments Condominium (30%)PROJECT3 psf1,044 _ started to sprout up. Later on, developers realised the and terrace/superlink projects (52%). RM450 LandedTAMAN TENAGA Mayang immense potential of the area and started to buy up KLH Mayang Apartment 883Kesuma 904 - Apartment RM300 large tracts of plantation land for building of integratedRM600 March appearedSri Kenangato be the most active Based on an analysis of our data on new SungaiThe Buloh appeared to be the develop- - 603 townships. Some of these large and successfulPROJECT townships1 psf month in 2017 with Melura total Apartment of 12 projects launches, we noted_ that approximately 31% ers’Zest focus in 1H 2017 as our data showed a RM550 Avilla Sri that have been launched in Puchong are: launched beforePROJECT3 it psfrecorded a gradual of the newSeri projects launched in 1H 2018 total of 4 projects launched in the area. Palm Terrace Apartment Teratai 781 _ decline up until June 2017. In contrast,BANDAR oered KINRARAKasturi units 5 within the8 Kinrara RM 400,000 to Apart from Sungai Buloh, KlangSEMENYIH comes in BANDARFebruary and June Sriof 2018 recorded the • Bandar Puchongclosely withJaya 3(930 projects. acres) In 1H 2018, the PUCHONGSHAH JAYA ALAM *Palm Ville Apartment RM600,0001,004 price1,040 bracket, followed by 27% Landed most number, withMekar 7 projects launched in launched in 1990 by IOI Properties group Landed Skyz D’Cahayawithin the price bracket of RM 600,000 to interest appeared to have shiftedRM300 to each month.RM300 Interestingly,Rimba ResidenceMay 2018 marked RM800,000.1,356 In 1,5432017, the percentages were Petaling Jaya and Setia Alam as- our the slowest month for new launches due to BANDAR • Bandar Kinrarafindings (1,904 reported acres) 3 launchednew project in launches - KLANG 18% and 23% respectively. Whilst 1H 2017 RM500 the higher RM550sense ofSeri uncertainty Kasturi ApartmentVistaria during the saw868 27%KINRARA of the projects872 with5 units priced1991TAMAN by at Island eachPUNCAK &in Peninsularthese KINRARA areas. group This is followedPROJECT1 psfclosely BANDAR SUNWAY GE14PROJECT1 period. psfPerhaps, with a moreLanded optimis- RM 1m and above, 1H 2018 saw the figure by Sepang, Cyberjaya, Puchong and Klang Taman Puncak tic post-electoral Sierraoutlook, ResidencyRM300 developers drop889 to only 16%967 Highrise with 2 projects launched in each of these - Kinrara • Pusat Bandar Puchong (700 acres)PUTRAJAYA regainedSkyPod their momentumSutramas in the sector as RM700 launched areas.in 1994 by SP Setia group Skypod ResidencesRM600 634 1,249 - Highrise our data showed a significant jump from the BasedMelur on our analysis, approximately 42% PROJECT1 psf RM800 • Bandar Puteri PuchongSUNGAI (930 BULOH acres)RM700 4 slow months during the election period.PUNCAK *Skyz Residence ofKOTA the1,162 KEMUNING units in 1H1,561 2017 were priced within Sri Kesidang PROJECT1 psf launched in 1999 by IOI PropertiesKLANG group- 3 KINRARA the RM 501Highrise to RM 750 per sq ft bracket with BANDARRM800 With regards to size of the units launched, Sierra SERI KEMBANGAN 2 Sri Anggerik 1 & 2 Apartment another786 RM700 38% within829 the rangeWith of RMthe 751success to and popularityKINRARA PROJECTgarnered1 6 psf by these SEMENYIH 2 we noted that in 1H 2017, most of the units RM 1,000 -per sq ft. The trendPUCHONG continued in Enggang townships, many people in the KlangPUCHONG Valley began2 to launched have built-upSri Bayu areas Apartment of below 1000 1H 1,1732018,RM800 where1,281 the majority of projectsHENING Duet Rimba look favourablyHighrise at making PuchongCYBERJAYA theirSEPANG home and2 this sq ft and between 1,001 to 1,500 sq ft. In werePROJECT1 oeredpsf at between RM 751 to RM TAMAN Taman 2018, we found thatSri Cempaka projects Apartment launched in 732 818 encouragedRM500 even more new townshipsSEPANG to sprout 2up. ForDamai Total Number and Total Units of Project 1,000 per sq ft (39%), followed by -RM 501 DAMAI UTAMALanded the first half oered more spacious units to RM 750 per sq ft (34%).example, It tapered Puchong o Intan, PuchongSETIA ALAMPerdana,RM300 Puchong2 PUCHONG 915 RM650 38 Sri Kenanga Apartment 1,023 Utama, Bukit Puchong and SaujanaBANDAR SUNWAY Puchong.- 2 coming in between 1,001 to 1,500 sq ft (11 from there, with the numberPROJECT2 of psfprojects projects) and 1,501 to 2,000 sq ft.(10 BANDAR SAUJANA PUTRA RM550 2 KINRARA Sri Kesidang Apartment oering850 units exceeding_ RM751 per sq ft projects). The return to larger units are The improved accessibility withKOTA the KEMUNING completionPROJECT2 psf of2 sever- 29 decreasing, culminating in only 6% oering RESIDENCE PUTRA HEIGHT 2 better suited for familiesSri Mekar or Apartment home upgrad- units1,109 exceeding1,130 RM1,500 peral highwayssq ft in 2017 like the Damansara–Puchong Expressway ers; which brings to the next factor that is to and 8% in 2018, respectively.(LDP), Shah Alam CYBERJAYAExpressway (KESAS),SUBANG North-South2 AMPANG 1 look19 at the price perspective.Sri Teratai Apartment 797 _ Expressway Central HighriseLink (ELITE),Landed South Projects Expressway (SKVE) RM500and MajuRM400 ExpresswayPUTRAJAYA (MEX)1 made Sri Sunway Apartment 797 818 KOTA SELANGOR 1 Puchong even more attractive- -and desirable. Apart from 10 Strata and Landed RM600 RM500SHAH ALAM 1 Suria Kinrara Apartment 712 Strata_ andthat, Landed the Ampang LRT Line Extension, which extends PROJECT2 psf psf CHERAS 1 by Units. by Projects.from to also provides another SUBANG JAYA 1 0 Sutramas Apartment 840 850 option to those who prefer getting in and out of SERENDAH 1 2017 2018 Puchong without getting stuck in trac jams. Number of new project launches RAWANG 1 Taman2017 Damai Utama Apartment 650 _ 2017 PUNCAK ALAM 1 16,000 Taman Kinrara Seksyen 2 Apartment 577 764 (NORTH) 22% 78% Total Launch 51%by Month 49% Types Of ProjectsPETALING JAYA 3 Taman Puncak Kinrara Apartment 646 753 SETIA ALAM 3 12,000 12 14 SEPANG 2 The Zest Condominium 1,119 1,206 CYBERJAYA 2 9 11 8,000 KLANG 2 Units 2018VillaMas Apartment 1,098 1,163 2018 PUCHONG 2 6 7 Vista Lavendar Apartment 852 1,016 SHAH ALAM 1 4,000 SERI KEMBANGAN 1 3 810 4 33% Vistaria Apartment67% 52% _ 48% KOTA KEMUNING 1 puchongIn this0 issue of our Value Map series, our focus is on the Northern partBANDAR of MAHKOTA Puchong. CHERAS 1 2017 Zefer Hill Condominium2018 0 1,356 1,730 0 January February March April May June Apartment/ Flat BANDAR SUNWAY Semi-D 1 Terrace/ Super Link By Henry ButcherNumber of Researchunits launched inand Valuation Strata Highrise RAWANG 1 new projects Landed Landed SUNGAI BULOH 1 SEMENYIH 1 IOI Puchong Jaya Station. PUTRAJAYA 1 Credits:Fazley01 HERALD OCTOBERBUDGETOCTOBER 2019 2018 2018 EDITION 10/64 // HERALD HERALD 5 / HERALD OCTOBER 2018 LEGENDSelangor: Dip in New Launches in H1 2018 Under ConstructionBased onCompleted our analysis of the data compiled N by us,, the first half of 2018 witnessed a dip Price Per QUICK STATSUnit Sizes Pricing in the number of new launches in Selangor $ UNDER CONSTRUCTION (Built-UpSquare Feet* SF) Price (PSF) as opposed to the same periodCOMPLETED the previous (Built-Up SF) Built-Up (SF) Price (RM UNDERPSF) CONSTRUCTION (Built-Up SF) year. In 1H 2017, there were a total of 37 new < 1,000sf Minimum Maximum Maximum 2,120 1,070 < RM400,000 < RM500 YearlyBelowprojects 200 launched201- 400 but401 in- 600 1H 2018,601 there-New 800 wereAbove 800Minimum LaunchesMaximum 30%Minimum 60021% Minimum Maximum just 23 new projects launched. This 206 9% Ohako3% Residence 6% 815 3% 1,002 8 Kinrara Residence 623 1,069 represents a drop of close to 38% and could Median 1,168 475 Ohako Residence 815 1,002 1,001sf - 1,500sf Parc Ville 1226 1323 * = Askingbe due price to developers in the state adopting RM401,000 - RM600,000 Atmosfera Condominium 1,282 1,456 RM501 - RM750 a more cautious approach in view of the Parc Ville 1226 1323 softer market conditions. Also, due to the Residensi Puchongmas 900 _ Avilla Apartment 96918% 1,033 26% Statisticland availabilities in this state region, there in SelangorResidensi Puchongmas 900 _ 18% Ten31% Kinrara 42% 646 34% 1,281 are generally a fairD'Cahaya share Apartmentamount of both 904 1,501sf - _2,000sf Ten Kinrara 646 1,281 landed and strata properties, whereby 49% Twinz Residence 871 1,226 RM601,000 - RM800,000 and 51% of high rise *Duetand landedResidence projects in 1,02914% 1,298 24% RM751 - RM1,000 H1 2017 vs 2018 Twinz Residence 871 2017 respectively, and 48% and 52% in 2018. 1,226 by Henry Butcher ResearchEnggang Apartment 678 2,001sf - _2,500sf Kon 23% 27% 38% 39% In terms of numberKinrara of units, we observed an In this issue of our Value Map series, our focus is on the even larger declineImpian ofHeights 60%.SELAYANG Condominium For 1H 2017, 1,066 1,227 Kinrara Low15% 19%Northern part of Puchong. Puchong is located within the Atmosferathere were a total of 15,697 unitsLanded launched RM1,001 - RM1,500 Zefer Kesuma Apartment Cost 893 _ PetalingKinrara Court districtRM801,000 and - RM1,000,000is sandwiched between Petaling in new projects, but forVillamas 1H 2018,RM200 the figure Kinrara Ria declined to Hilla mere 6,235 units.- Strata 2,501sf - 3,000sf Jaya and Kuala Lumpur to the north, Subang Jaya and Kinrara Court 853 891 Palm SERI KEMBANGAN properties were still more ShoppopularRM250 lots at Puchongfor both Perdana Shah Alam toIOI23% the Mall west, PutrajayaLDP23% Sunway to Toll the Plaza, south8% from andPuchong Seri heading 16% to Sri Bayu Terrace 2017 and 2018 as ourKinrara PROJECTdata1 Low shows CostpsfCredits:jtx1000 Flat 67% (out dotnet Kinrara646 Putri8% Sri _ 5%KembanganCredits:Fazley01 to the east. In this first part ofHigh-rise our articlePetaling on Jaya Palm Ville of the total of 6,235 units) were strata Sunway Puchong, we will cover the areas encompassingRM600 Above Bandar RM1,500 Impian - projects in 2018,SUNGAI andKinrara BULOH Heights78% Putri (out Apartment of the total of 786Ten Kinrara797 on the otherPuchong hand hadJaya, units AboveBandar RM1,000,000 Kinrara and the surrounding The population explosion saw rapid 3,001sf - 3,500sf and priced within theRM800 RM500 to RM600 15,697urbanisation units) in 2017 Landedin respectively.Puchong withOf the many with built-up areasTaman rangingneighbourhoods. from 646 sq per sq ft range. 8% Kinrara Ria Apartment 807 Vista 926 Suria PROJECT1 psf6% new projects launched in 1H 2018, there Kinrara IMPIANcommercial HEIGHTS centres,RM300 modern amenitiesDuaPETALING JAYA ft 5%to 1,281 sq ft and5% have been pitched to were no apartment/flat and bungalow Lavender Kinrara 27% 16% and facilities coming- up toMenjalara serve the 904the market within thePuchong RM700 towas RM800 established Be sure in to thelook early out for1900’s the nextand issue KLH Apartment Highrise Above1,012 3,500sf projects launched. RM400In addition, our data per sq ft price bandflourished before discounts. due to tin mining activities but its develop- rapidly burgeoning population.Medan SomeRM800 where we will discuss on the second part reveals that PROJECT1the Koimajority Kinrarapsf Condominiumof the projects 1,063 1,221 ment and urbanisation only started around 1985BANDAR after MAHKOTA the key landmarks worth notingPutra in Puchong - The higher pricing commanded by these of Puchong, taking a more in-depth look launched Sriin the first six-month period in 10% 0% CHERAS are the popular shopping centres andRM1200 projects comes as notin surprise mining as leases Bandar expired at Puchong and small South. housingBUKIT schemes High-riseJALIL 2018 comprisedAnggerikSETIA serviceKoi ALAM Legian apartments Condominium (30%)PROJECT3 psf1,044 _ started to sprout up. Later on, developers realised the and terrace/superlinkhypermarkets projectsserving (52%). residents in Puchong Jaya and are RM450 LandedTAMAN TENAGA Mayang immense potential of the area and started to buy up KLH Puchong andMayang beyond Apartment such as IOI Mall, 883amongstKesuma the904 more prime locations within Did you know? - ApartmentTesco Puchong,RM300 Giant Bandar Kinrara, Puchong, and are largelocated tracts in of closeplantation land for building of integratedRM600 March appearedSri Kenangato be the most active Based on an analysis of our data on new SungaiThe Buloh appeared to be the develop- - 603 townships. Some of these large and successfulPROJECT townships1 psf monthGiant in 2017 Bandar with MelurPuteria total Apartment andof 12 Jusco projects Taman launches, proximity we noted to_ major that approximatelyamenities such 31% as IOIers’Zest Afocus former in 1H 2017 rubber as our dataplantation showed a and RM550 Avilla Sri that have been launched in Puchong are: launchedEquine. beforePROJECT3 A notable it psfrecorded landmark a gradual for recre of- theCity newSeri Mall, projects Pavilion launched Bukit Jalil in 1Hand 2018 the KLtotal mining-town of 4 projects town, launched Puchong in the comes area. with Teratai Palm Terrace Apartment 781Sports City. _ declineational up untilpursuits June is 2017.the Kinrara In contrast,BANDAR Golf Cluboered KINRARA Kasturi units 5 within the8 Kinrara RM 400,000 to Apartan from interesting Sungai Buloh,tale, KlangstartingSEMENYIH comes with in the BANDARFebruary and June Sriof 2018 recorded the • Bandar Puchongclosely withJaya 3(930 projects. acres) In 1H 2018, the PUCHONGwhichSHAH JAYA ALAM adds *Palman Villeair Apartmentof prestige to theRM600,000 1,004 price1,040 bracket, followed by 27% name dubbed after a bird calledLanded “Burung most number, withMekar 7 projects launched in launched in 1990 by IOI Properties group neighbourhoodLanded and catersSkyz to the needsD’Cahayawithin Overall, the price a large bracket number of RM of 600,000 the properties to interest Pucung”. appeared Early 20thto have century, shiftedRM300 the Britishto each ofmonth. moreRM300 Interestingly, well-heeledRimba ResidenceMay segments 2018 marked of society. RM800,000.1,356 or about In 69% 1,5432017, of the the percentages projects covered were Petalingin brought Jaya in andfields Setia of rubberAlam plantationsas- our the slowest month for new launches due to BANDAR • Bandar Kinrarafindings (1,904 reported acres) 3 launchednew project in launches - KLANG 18% ourand 23%study respectively. were exchanging Whilst 1H hands2017 at and tin mining but soon afterRM500 indepen- the higher RM550sense ofSeri uncertainty Kasturi ApartmentVistaria during the saw868 27%betweenKINRARA of the RM200projects872 andwith5 RM400units priced1991 TAMANprice by at Islandper eachPUNCAK &in Peninsularthese KINRARA areas. group This is followedPROJECT1 psfclosely Puchong is also amply served in the area dence in 1957, the British mining compa- Landed BANDAR SUNWAY GE14PROJECT1 period. psfPerhaps, with a more optimis- RM 1msq andft. Theseabove, are1H 2018the sawolder the apartments figure by Sepang, Cyberjaya, Puchong and Klang with healthcare with privateTaman hospitals Puncak nies changed ownership whereby an tic post-electoral Sierraoutlook, ResidencyRM300 developers drop889 to only 16%967 Highrise with 2 projects launched in each of these such as Columbia Asia -MedicalKinrara Centre catering to lower-middle• Pusatto middle Bandar influx Puchong of Chinese(700 acres)PUTRAJAYA companies began to regainedSkyPod their momentumSutramas in the sector as RM700 launched areas.in 1994 by SP Setia group and KPMC PuchongSkypod Residences RM600as well as educa- 634income families1,249 and- first-time home acquire them. HoweverHighrise by the our data showed a significant jump from the BasedMelur on our analysis, approximately 42% tional needs withPROJECT1 higherpsf learning institu- buyers who generallyRM800 • have Bandar lower Puteri mid-1980’s, PuchongSUNGAI (930 the BULOH acres)collapseRM700 of tin prices4 in slow months during the election period.PUNCAK *Skyz Residence ofKOTA the1,162 KEMUNING units in 1H1,561 2017 were priced within tions like the UniversitiSri Kesidang Putra Malaysia budgets. ThePROJECT1 new projectspsf launchedwhich are in 1999international by IOI Properties KLANGmarkets group -caused 3 the tin KINRARA the RM 501Highrise to RM 750 per sq ft bracket with BANDARRM800 With (UPM)regards and to sizeBinary of the University. units launched, Sierralaunched at above RM500 per sq ft oer industrySERI to KEMBANGAN slowly disperse2 and decline. Sri Anggerik 1 & 2 Apartment another786 RM700 38% within829 the rangeWith of RMthe 751success to and popularityKINRARA PROJECTgarnered1 6 psf by these better quality specifications, facilities Many residentsSEMENYIH and workers2 then shifted we noted that in 1H 2017, most of the units RM 1,000 -per sq ft. The trendPUCHONG continued in Enggang and designs. townships, many people in the KlangPUCHONG Valley began2 to launchedIn our have researchbuilt-upSri Bayu areas for Apartment ofhigh below rise 1000 strata 1H 1,1732018,RM800 where1,281 the majority of projectsHENING to rubberDuet and palm oil plantations till the Rimba look favourablyHighrise at making PuchongCYBERJAYA theirSEPANG home and2 this sq ft residencesand between in 1,001Puchong to 1,500 North, sq weft. Inexam werePROJECT1- oeredpsf at between RM 751 to RM early 1990’s. TAMAN Taman 2018, we found thatSri Cempaka projects Apartment launched in 732Our study 818also revealsencouraged thatRM500 there even are more5 new townshipsSEPANG to sprout 2up. ForDamai Total Numberined a and total Total of 42 Units completed of Project projects. Of1,000 per sq ft (39%), followed by -RM 501 DAMAI UTAMALanded the firstthese half 42 oered projects, more wespacious observed units thatto RMnew 750 projectsper sq ft (34%).at variousexample, It tapered stagesPuchong o of Intan,Excerpt: PuchongSETIA ALAMPerdana,RM300 Puchong2 PUCHONG 915 RM650 38 Sri Kenanga Apartment 1,023 Utama, Bukit Puchong and SaujanaBANDAR SUNWAY Puchong.- 2 comingmore in betweenthan 60%1,001 to(approximately 1,500 sq ft (11 26from construction there, with thein Puchong numberPROJECT2 North.of psfprojects Parc Ville projects) and 1,501 to 2,000 sq ft.(10 BANDAR SAUJANA PUTRA RM550 2 KINRARA projects) wereSri Kesidang completed Apartment between theoering 850and unitsTwinz exceeding Residence_ RM751 in Bandar per sqPuchong ft The population explosion saw rapid projects). The return to larger units are The improved accessibility withKOTA the KEMUNING completionPROJECT2 psf of2 sever- 29 years of 2000 to 2009 whilst 7 projectsdecreasing, Jaya and culminating Residensi in Puchongmas only 6% oering in Jalan urbanisation in Puchong withRESIDENCE many PUTRA HEIGHT 2 betterwere suited completed for familiesSri Mekar in or Apartment thehome 1990s upgrad and- units8 1,109Puchong exceeding were1,130 RM1,500 completed peral highwayssq thisft in year2017 like and the commercialDamansara–Puchong centres, modernExpressway amenities CYBERJAYA SUBANG 2 ers; whichbetween brings 2010 to the to next2018. factor that is to and 8%these in 2018, developments respectively. (LDP),are on parShah with Alam the Expresswayand facilities (KESAS), coming North-Southup to serve the look at the price perspective.Sri Teratai Apartment 797 _ AMPANG 1 19 current trend of nature-centricExpressway concepts, Central HighriserapidlyLink (ELITE), Landedburgeoning South population. Klang Valley Projects PUTRAJAYA 1 We observed that medium cost apart- with lush greenery surroundingExpressway the (SKVE) area RM500and MajuRM400 Expressway (MEX) made Sri Sunway Apartment 797 818 - KOTA- SELANGOR 1 ments priced within the range of RM200 and comprehensive amenities.Puchong even However, more attractive and desirable. Apart from 10 Strata and Landed RM600 RM500SHAH ALAM 1 to 400 perSuria sq Kinrara ft have Apartment built-up areas 712it is interestingStrata_ to andlearnthat, Landed that the these Ampang three LRT Line Extension, which extends PROJECT2 psf psf CHERAS 1 by Units. by Projects.from Sri Petaling to Putra Heights also provides another ranging from 700 to 1,000 sq ft whilst projects oer units at three dierent SUBANG JAYA 1 0 Sutramas Apartment 840 850 option to those who prefer getting in and out of condominiums priced within the RM400 price points, suitable for buyers of dier- SERENDAH 1 2017 2018 Puchong without getting stuck in trac jams. toNumber 600 of pernew projectsq ft launches bracket have sizes ent levels. Parc Ville comes in at the RAWANG 1 Taman2017 Damai Utama Apartment 650 _ 2017 between 600 to 1,500 sq ft. Newer RM600 to RM800 per sq ft followed by PUNCAK ALAM 1 16,000 The population explosion saw rapid urbanisation in apartments/condominiumsTaman Kinrara Seksyen 2 Apartment launched in 577Twinz Residences764 with units in the (NORTH) Puchong with many commercial centres, modern ameni- 22%recent years have sizes betweenTotal 650 Launchto RM400 51%by Month to RM600 per sq ft bracketTypes and Of ProjectsPETALING JAYA 3 Taman Puncak Kinrara78% Apartment 646 ties49% and facilities coming up to serve the rapidly 1,300 sq ft and are priced within the Residensi Puchongmas753 being the most SETIA ALAM 3 12,000 12 14 RM500 to 800 per sq ft range. aordable of these burgeoningnew developments population. Some keySEPANG landmarks2 worth The Zest Condominium 1,119 1,206 oering units within notingRM200 in toPuchong RM400 are the popularCYBERJAYA shopping centres2 and 9 11 8,000 per sq feet. hypermarkets serving residents in PuchongKLANG and 2beyond Units Skyz Residences2018VillaMas Apartmentby IOI Properties 1,098 1,163 2018 Berhad oered units with built-up areas such as IOI Mall, Tesco Puchong,PUCHONG Giant Bandar 2Kinrara, 6 7 Vista Lavendar Apartment 852Another interesting1,016 projectGiant Bandar is O’Hako Puteri by and Jusco TamanSHAH ALAM Equine.1 A notable 4,000 of between 1,162 to 1,562 sq ft and priced within the bracket of RM600 to RM800 Marimo Land Sdn landmarkBhd which for recreationalis a pursuitsSERI KEMBANGAN is the Kinrara1 Golf Vistaria Apartment 3 810 _ 4 33%per sq ft whilst 8 Kinrara67% Residence in one-of-a-kind52% Japanese-inspiredClub48% which adds service an air of prestigeKOTA KEMUNING to the neighbourhood1 puchongIn this0 issue of our Value Map series, apartmentour focus located is on at andthe the caters Northernend toof theJalan needs part BANDAR of ofmore MAHKOTA Puchong. well-heeled CHERAS segments1 of Bandar2017 KinraraZefer HillSection Condominium2018 5 oered0 units 1,356 1,730 0 January February March April society.May June Apartment/ Flat BANDAR SUNWAY Semi-D 1 Terrace/ Super Link By Henrypriced ButcherNumber between of Researchunits RM500launched in andto RM Valuation 600+ per Pipit in Puchong Jaya that oers units Strata Highrise RAWANG 1 sq ft. new projects ranging in size between 815 to 1,002 sq ft Landed Landed SUNGAI BULOH 1 SEMENYIH 1 PUTRAJAYA 1 HERALD OCTOBEROCTOBER 2018 2018 BUDGET 2019 EDITION 64 // HERALD 11/ HERALD5 7/ / HERALD OCTOBER 2018 "Iron Man and Iron Lady", the colourful painting of our Prime Minister Tun Dr Mahathir Mohamad and Tun Dr Siti Hasmah was the highlight of the day. Malaysia Merdeka Carnival @ Antara Residence

Nadi Cergas Sdn Bhd’s Antara Residence Interestingly, car enthusiasts were in for a treat as organised a family-friendly a air in conjunction there were vintage cars exhibition that also made with Hari Malaysia. an appearance at the gallery. Also, the team organised games for everyone to participate in and Always the property to be in the forefront of win some Antara Residence merchandises. celebrations, Antara Residence@Putrajaya by Nadi Cergas revelled in the National Day merriment by Entertainment during the carnival were by KN organising a family-friendly day on 22 September Buskers who kept the visitors entertained with 2018. Dubbed as ‘Malaysia Merdeka Carnival’, the patriotic anthems as well as some local favourites. event followed right aer Antara’s recent participa- ere was also a small bazaar for attendees to do tion in Media Prima’s Karnival GegaRia held in the some shopping, with booths and food trucks compound of the Palace of Justice in Putrajaya. selling a variety of things including homeware, owers, cakes and pastries, spices, street food, and Held at the Antara Residence Sales Gallery in beverages. It was an ideal day o for everyone for KN Buskers was the entertainers of the day, playing popular tunes Precinct 5, the Malaysia Merdeka Carnival played the long weekend and truly one to be remembered. for the crowd. witness to the entire area brimming with patriotism as the Jalur Gemilang was raised to proudly y everywhere. e event kicked o at For more information: 11am as parents and their children arrived excited- +6013 308 5825 ly to take part in a myriad of activities including +6012 330 9391 pony-riding, bouncy castle and show-and-tell at +6017 461 0067 the mobile petting zoo. ere was also a small bazaar with booths and food trucks selling e highlight of the Malaysia Merdeka Carnival, a variety of things. however, were the paintings by Malaysian artist entitled Iron Man and Iron Lady. A pair of colour- ful depictions of our Prime Minister Tun Dr Mahathir Mohamad and Tun Dr Siti Hasmah, the paintings were hung front and centre for all the guests to see and take pictures with. ere were also other inspiring paintings at the premises, including a sepia-toned of the Father of Indepen- e sepia-toned depiction of Father of Independence, ere was also a vintage car showcase at the gallery that dence, Tunku Abdul Rahman. Tunku Abdul Rahman. garnered attention from the crowd. For More Information: +6016 308 5825 | +6012 330 9391 | +6017 461 0067

12/ HERALD BUDGET 2019 EDITION THE PURSUIT OF Sky Bridge on Level 34 connects the towers and provides a bird's eye view of the city. OPULENCE WITH RITZ CARLTON RESIDENCES, KUALA LUMPUR

Ritz Carlton Residences is located in the city’s main business hub, shopping haven, entertainment and nancial district along Jalan Ampang and Jalan Sultan Ismail. Completed in October 2017, this Berjaya Corporation Berhad’s luxury residential project spans across 2.708 acres comprising of a single 48–storey tower with 288 units in total. ese units come in the range between 1,023 sq  and up to 4,284 sq feet. Participants eagerly awaiting the results of the Art Competition. e services suite is a landmark of opulence in the Golden Triangle district as it is a legendary global brand which seeks ownership from those who want a city-escape where they can Henry Butcher Real Estate team explaining the virtues of Ritz Carlton Residences to interested attendees. also call home. One of the key features of this residences is the 24-hour concierge services accessible for the homeowners of this ne property. From airport pick-ups to oral arrange- ments, these can be organised virtually at your ngertips via the housekeeping service without a worry.

Participation from an audience member to e residences also provides a unique Vacant Home Care make Middle Eastern desserts during the management whenever needed for assistance when no one’s Mediterranean cooking demo. home. e Vacant Home Care Programme by Ritz Carlton Residences is an excellent system whereby arrangements such as home monitoring, cleaning and inspection of home spaces, meeting contractors and the likes, can be made.

City-style luxury living is taken up a notch as Ritz Carlton Attendees had an opportunity to learn more about Ritz Carlton Residences from the team. Residences oers access to state-of-the-art amenities in the likes of in nity lap pool, business centre, private spa treatment rooms and full-edged gym. As if that wasn’t enough, security and privacy are highly valued in the premises as the property is decked out with CCTV surveillance, card access system as well as a video intercom system too. Datsun 1000.

Recently, Henry Butcher Real Estate hosted two private events for a preview on Ritz Carlton Residences Kuala Lumpur. Overall, the response was promising given the luxe factor that comes with the property.

Scrumptious fattoush salad as the first course Visitors standing in front of a vintage at the cooking demo. Another successful collaboration between Mini Cooper. Henry Butcher Real Estate and Berjaya Properties marketing team.

13/ HERALD BUDGET 2019 EDITION