Issue #16 WM rm1.00 • S’pore $1.00 kdn pp17702/03/2013 (031992) 2 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS A time to harvest Editor’s he challenge when choosing currently available there. scape, but its early investors are al- thoughts to write about Iskandar Ma- One market consultant I spoke to ready looking at healthy rental Tlaysia is to find something to said that Malaysians have become returns of between 5% and 7%. say which hasn’t already been said. so used to speaking about Iskandar Another common misperception With so much discussion in the in the future tense, that we are fail- about Iskandar is that there are no market centred on this mega eco- ing to see that the time for invest- mid-priced housing options for ho- nomic endeavour in the south of the ment has already arrived. And with meseekers. Granted, opportunities peninsula, it seems almost like an land prices escalating in the state, are not abundant (see page 16 for impossible task... which is why I the argument to “buy now” is be- more on this), but there are options have chosen, instead, to say some- coming more and more potent. if you know where to look. thing that perhaps hasn’t been said Currently, market reports point One place worth looking is under enough. out that transactions in the residen- I&P Group’s umbrella. The develop- More than a decade ago, we tial subsector are being driven by er has been active on the Johor fron- hatched a plan to give Malaysia a the upgrader market, but when you tier since the early 1980s and is one new economic focal point, one that consider the existing and incoming of a handful of developers that con- would spur national growth and ca- supply of residential stock for Johor, centrates much of its efforts on the desirable margins. talyse greater foreign investment it is obvious that future supply will mid-priced sector. This, among other reasons, is why into the country. In the mid 2000s, surpass the current volume of buy- Some of its current township we’ve put together this special issue we further refined this plan under ers. projects include Taman Pelangi In- on Smart Shopping in Iskandar... the moniker Iskandar Malaysia, set- But this high volume is because dah, Taman Perling and Taman Rint- and for the first time, this being de- ting out clear geographical vicinities Iskandar is designed to appeal be- ing offering properties that broadly livered to you in the all-new gloss within Johor that would drive spe- yond the local market, and reach out range between RM45,000 and RM2.3 and compact PropertyTimes.my, cific sectors of growth and we began to investors on both a national and million. But a large portion of its designed to offer better convenience in earnest to plant seeds that would international level. products are priced from the and provide a more striking read. someday bear lucrative fruit. However, on the national front, RM450,000 mark. What better way to seek out po- In the years that followed, we investors from the Klang Valley and Market observers are quick to tential investment prospects in Is- watched these concepts grow and other regions are only just beginning point out that the limited supply of kandar? Happy reading, and happy materialise into appealing attrac- to see the yield potential of some of mid-priced homes actually makes shopping. tions on both a local and global plat- many of the existing properties in this type of housing a smart buy, form. But the time for “watching” Johor Bahru, which in some cases is with high rental potentials and ex- has ended, and many of us have higher than what can be expected in cellent appreciation prospect. failed to notice that some “fruits” Kuala Lumpur. For now, many of these units are now ripe for the picking. Take the popular Seri Austin Resi- come in spacious layouts, but with While there has been steady dence apartments in the award-win- land prices continually rising on the growth in the volume of property ning Seri Austin Township located southern tip of Johor, developers transactions in Johor, industry pro- to the north of JB, for example. Not will soon have to choose between fessionals agree that buying market only has it proven that high-rise concentrating on higher priced has not yet tapped into the full po- projects can find success in a tradi- products or extremely high density CHRIS PRASAD tential of investment opportunities tionally landed residential land- lower priced units in order to obtain Editor

MANAGEMENT EDITORIAL Production MARKETING/ COLUMNIST TEAM COORDINATION/ Pavither Sidhu Kent Tan Sanusri Mohan CIRCULATION Dr Daniele Gambero Features News Graphic Designer Issue #16| Chris Prasad kdn pp17702/03/2013 (031992) Editorial Roznah Abdul Jabbar Prisca Teh Aiemax Madehi Shaun Murugaiyah Gunaprasath Bupalan Issues Copy Editor Photographer Marketing Coordinator PropertyTimes.my, is published by Terra Value Sdn Bhd (Co. no 662001-M) Operations / Marketing Viknesh Ashley 33-5-6, BLOCK C, JAYA ONE BC Tiang Clarence Jalan Universiti, 46200 Petaling Jaya, Selangor, Malaysia Reviews T: 018. 349. 5422 | 03.7629.8120 / 21 / 23 / 29 | Production E: [email protected] Hotline: 03.7629.8120 Hotline: 03.7629.8120 Hotline: 03.7629.8129 Hotline: 03.7629.8123

4 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS Developing with distinction Dynasty View’s renowned Seri Austin enclave is raising the standard of township living

The Seri Austin township provides an oasis of serenity, with ever-welcoming homes alongside outstanding natural features. by PAVITHER SIDHU can deliver on its promises, or to be from the East Dispersal Link and minutes’ drive away. depended upon to hand over a prem- within easy access from the North- Spanning across 500 acres of n a property market where buy- ises that feels as good, or even better South Expressway through the Dato’ freehold land, Seri Austin promises ers need to part with a substan- than what their words had painted. Onn interchange lies a robust resi- tranquil living, away from the hus- tial amount of their savings be- One developer that understands dential enclave that is built with na- tle-and-bustle of city life and within Ifore they get to see even an inch this perception is set to make good ture as the inspiration, with beautiful a convenient distance from various of their purchase, one of the markers its name. and scenic lakes among lush green- amenities. DVSB under the helm of buyers rely on is the developer’s rep- Dynasty View Sdn Bhd (DVSB), a ery, against a backdrop of rolling its CEO Wong Kuen Kong believes utation. wholly-owned subsidiary of United hills. in creating a township that incorpo- A convincing salesperson, a Malayan Land Bhd, is the name be- The township is also easily ac- rates quality and values within a glossy brochure and a sample house hind the Seri Austin development in cessed via the Pasir Gudang High- natural environment. Wong took may give good impressions, but even- the epicentre of the southern corridor way, Tebrau Highway and Malaysia- this opportunity to execute his pas- tually the trust is based on the devel- of Iskandar Malaysia, Johor Bahru. Singapore Causeway. The Senai sion and determination into the en- oper’s track record–on whether it Located a mere 12 minutes’ drive International Airport is a mere 20 tire planning process of this en- ISKANDAR INVESTMENT FOCUS propertytimes.my | Issue #16 | 5

Seri Austin Residence which offers 420 units was launched in 2013.

clave, and the result has borne fruit to his efforts. Through his leadership and char- ismatic persona, the Seri Austin township is now a thriving residen- tial hotspot in Johor and has be- come a model for other developers to learn from. Catering to a current population of 12,500, this residential hub is sur- rounded by amenities such as the Austin Hill Country Club and Golf Resort, with the AEON shopping mall, Tesco and Giant hypermar- kets within a few minutes’ drive away. Also in the vicinity are a num- The three-storey shop-offices comes with its own private lift. ber of healthcare facilities and in- stitutions of higher learning. Among the units that have been 3,172sq ft. The double-storey terrace units What makes this development sold in Seri Austin are the Ametrine Under the Citrine phase featur- called Amethyst come in built-ups unique is its blend of different types 1, a range of double-storey bunga- ing double-storey semi-dees, the of 2,106sq ft, while the Iolite phase of houses. These include double- lows with land areas of 46ft by 90ft units comes with a built-up of comes in sizes of 1,949sq ft and storey link units, cluster houses, and built-ups of 3,150sq ft. Ame- 2,630sq ft while the built-ups for the 2,027sq ft. bungalows, semi-detached units trine 2 comes with land areas of double-storey clusters range from In 2013, DVSB launched another and serviced apartments. 46ft by 90ft and a built-ups of 2,411sq ft to 2,419sq ft. phase called Olivine consisting of 6 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS

Since its launch in 2005 and with 3,000 units sold thus far, this residential enclave is an epitome of quality, sophistication and luxury as well as a mark of distinction in Johor, says Wong (far right).

double-storey semi-dees and clus- ft for intermediate lots and 8,629sq mands, the township is equipped around RM200,000 with monthly ter homes with built-ups of 3,030sq ft for corner units. with high-speed broadband ser- rentals fetching up to RM500. To- ft and 2,669sq ft respectively. Wong said there are several vice, outdoor gym , gazebos and a day, that price has doubled to Another notable project is the more projects in the pipeline for jogging track. about RM480,000 and rentals rates Seri Austin Residence apartments 2014, including double-storey ter- Wong said buyers there range can reach RM1,500 to RM1,800. which comprise a total of 420 units races and serviced apartments. between the ages of 25 and 35, “Therefore, living here is still bearing three different layouts. “It is no surprise that most of the with an average monthly net in- within the affordable cap and Type A: 661sq ft, Type B: 888sq ft buyers are young families and up- come of RM4,000 to RM10,000. (prices) have been moving accord- and Type C: 1,208sq ft. graders from surrounding areas “We have a diverse mix of local ing to the market forces. Also available for sale that year who are attracted to the concept people living in Seri Austin, as well “I believe that the general mar- were double-storey terraces called of the entire township,” he said. as a number of Singaporeans who ket’s perception towards the af- Pearl with built-ups ranging from The entrance into Seri Austin is prefer living in Johor and working fordability cap is slowly changing 2,473sq ft. a grand statement by itself, with in Singapore,” he added. and more buyers are looking at DVSB then launched 44 three- water features and perimeter fenc- What makes living in Seri Austin various opportunities when it storey shop-office units called Zir- ing guarded by trained security affordable, Wong explained, is that comes to hopping onto the prop- con that come with private lifts. personnel. in 2007 a double-storey terrace erty ladder,” Wong added. These units come in sizes of 5,699sq To suit modern lifestyle de- house there would have cost As for competition from other ISKANDAR INVESTMENT FOCUS propertytimes.my | Issue #16 | 7

Besides aiding the needy, Wong DSVB is also the pioneer in offer- emphasises on the welfare of the ing high-speed broadband service residents of the townships his from Telekom Malaysia to its resi- company develops by providing dents, provided to more than 1,500 fire drill exercises, engaging par- units and becoming the highest ticipation in communal activities number for this service in any lo- to enhance community living cality. within and not forgetting appreci- It was also awarded the SME Sa- ation activities for the staff under habat Negara Award by the SMI As- his leadership. sociation of Malaysia, where DVSB “It is important to continuously was recognised for its significant engage in such activities and to contribution in playing a role in the value those who have supported promotion and development of the DVSB by purchasing properties in SME community in the country. the township. Its most recent recognition is the “Without them, the success of Asia Pacific Property 2014-2015 Seri Austin township would not Awards, where DVSB won in two have been achieved today. Also, it categories–Property Single Unit Seri Austin is the first township in Johor to have designated bicycle lanes for the residents. is crucial to always support groups and Residential Development–for of unfortunate people,” he said. the luxurious Ametrine Bungalow Development. Winning accolades With the vision to become a devel- In the pipeline opment of distinction, Seri Austin The thriving township that has ma- was envisioned to become a di- tured over the years is yet to be verse township, not only focussing completed. With 130 acres left to on community living but with am- develop, DVSB sees more opportu- ple landscaping in place, which nities to offer in Seri Austin. won its recognition as the 1st Wong told Real Reserve that the Smart Healthy City and Communi- company will be launching 225 ties Township in Iskandar Malay- double storey terraces dubbed Jade sia. that will feature two types of lay- DVSB thoughtfully planned am- outs. Type A will boast a land size ple green spaces, taking up 10% of of 22ft by 75ft with built-ups of the entire development by provid- 2,209sq ft and Type B with a land ing outdoor activity zones, an ex- size of 24ft by 75ft and built-ups of treme sports activities centre, 2,552sq ft. Combining the best of both worlds, D’ Lagoon converge landed strata and healthy smoke-free parks, concept Its latest stratified component apartments, completing larger than life living in the 262 units. stores for sports and health as in the township will feature 204 developers, Wong said Johor has a back to the society through its Cor- well as a centre for sports training, units in two blocks of 17-storey lot of prospects as it is rapidly porate Social Responsibility (CSR) education and consulting. luxury apartments that come with growing and catering to different programmes. Keeping in mind the importance a three-storey car park and club- markets offering various concepts. Wong, who is also the Deputy of conserving Mother Nature’s best house. It is nestled in front of a “There will not be much compe- Chairman of the Real Estate and resources, such as the tranquil 5.28-acre lake, on the opposite tition for DVSB as we are a unique Housing Developers’ Association lakes found in Seri Austin, DVSB side of which will rise 58 double- developer, building to cater to Johor, believes it is important to has incorporated the state’s first ef- storey landed units with a land what the buyers want and most give back to the society and he fective microorganism programme area of 22ft by 54ft and built-up of importantly, providing a good en- looks at helping underprivileged to boost eco-living in the lakes and 2,700sq ft. This project, named vironment for the people to live from all walks of life when carry- plants surrounding the township. D’Lagoon, is to be launched in the in,” he added. ing this out. One of their recent Wong, an avid cyclist, ensured middle of this year. CSR initiatives was donating that the development has designat- Also in the pipeline is a mixed de- Giving back to the society RM10,000 to the Johor Women’s ed bicycle lanes that stretch about velopment consisting of a serviced Aside from building properties to League and media luncheon in 7.3km within the vicinity, making it apartment block, Small office-Versa- cater to the demands of buyers, conjunction with Chinese New the state’s first township that tile office units, shop-offices, retail DVSB also puts emphasis on giving Year. boasts bicycle lanes. units and a multi-level car park. 8 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS

A new peak for Taman Perling

Modern serviced apartments set to be a new landmark for established township

The new serviced apartment will be a gated-and-guarded environment with three tiers of security systems. Units range from 710sq ft to 1,650sq ft in built-ups. Facilities include an entrance guardhouse, sculpture garden, guest waiting lounge, pavilion, pool deck, swimming pool, gazebos, glass box gym, feature pool, playground, BBQ area and a rooftop garden that links the two towers. The seventh floor of the tower will feature a 40,000sq ft floor area for greenery and lush landscaping. by kent tan convenient public transportation driving distances of 15 minutes from The project is due to be launched and amenities such as business and one another. This has provided Ta- in 2015. Investment seekers should aman Perling has now become financial centres. Schools, police man Perling with tremendous appeal consider this an early “heads-up” be- one of the most sought-after stations, markets, shopping com- among those seeking a community to cause there is immense potential for Taddresses in Johor Bahru. plexes, art and music schools, gal- raise and nurture a family. serviced apartments in the Johor Spearheading the rise of this town- leries, eateries and places of wor- In line with the growing promi- Bahru area – especially in a locale ship to real estate prominence is ex- ship have also mushroomed in nence of the township, and the in- that is just a stone’s throw from ex- perienced community builder I&P recent years. creased investment focus that Is- citing developments on the Danga Group Sdn Bhd, which began devel- Schools within the township in- kandar Malaysia has brought to Bay waterfront and about 20 min- oping Taman Perling more than three clude SJK Pei Hwa, SK Taman Per- Johor, I&P is now poised to take the utes from the Second Link to Singa- decades ago in 1981. ling, SMK Taman Perling, SM Sri township to new heights with the pore. The project also enjoys eight The matured town spreads across Omega, SK Pengkalan Rinting and SK introduction of a yet-to-be-named minutes away from Legoland Ma- 922 acres of freehold land. It enjoys Sri Perling 2, all located within short serviced apartment. laysia and Puteri Harbour and 10 ISKANDAR INVESTMENT FOCUS propertytimes.my | Issue #16 | 9

minutes to Causeway Link. The apartment will rise on 3.02 Among the key aims of the Iskan- acres of freehold land and take the dar plan is to draw spillover business shape of two 25-storey blocks that from the Island Republic, and along will house 286 units each. with that will come rising demand for Arry said that the project, which convenient residential options for will tower above the surrounding short- and long-term stay. landscape, will not only provide the But potential doesn’t lie in the locale with a new landmark, but also south alone, there is also equal op- set a new benchmark in modern ur- portunity to lure expanding busi- ban living. nesses from the Klang Valley and “In addition to the beautiful land- other regions to the north. scapes we have planned for the de- As companies are looking to ex- velopment, future residents will en- pand into Malaysia’s new economic joy facilities befitting the modern focal point, so too will they be look- urban lifestyle. This includes a wait- ing for residential options to house ing lounge for guests, sculptured top management personnel and cor- gardens, a pool deck, gazebos, a porate chiefs. glass box gym, water features, pavil- What makes I&P’s upcoming proj- ions, playground, BBQ area and ect particularly “focus-worthy” is more,” he said. the fact that it lies in a very estab- “We believe this project will have lished location with ready commu- strong appeal among first-time buy- nal facilities and amenities, and that ers, upgraders and expatriats. The the developer is known for keeping fact that it is located in a bustling its prices real and at an attainable township that offers plenty of retail, Developed in 1981, the township level. dining and educational options only comprises semi-detached houses, According to I&P sales and mar- adds to its appeal.” apartments, terraces and shop-offices. At keting manager Arry Nazroun Ah- Arry pointed out that the ports of the heart of the entire community is the mad, the project will offer 572 units Pasir Gudang and Tanjung Pelepas that come in a range of sizes be- are within convenient reach, and the commercial district, called Forty 5 Perling, tween 710sq ft and 1,651sq ft, indica- nearby Skudai Highway offers a di- which comprises three- and four- storey tively priced from RM450,000 on- rect link to Senai International Air- shop offices. wards. port.

The serviced apartment will be built adjacent to the local landmark, Perling Mall. The neighbourhood mall has two floors of almost 100 shops and is crowded with people during weekends. A cinema complex called Lotus Five Star Cineplex is also available there. 10 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS

The township is directly linked to the ports of Pasir Gudang and Tanjung Pelepas. It is also connected to the Skudai Highway, which is linked to the Senai International Airport and is accessible from Singapore via the Second Link (20 minutes) and Causeway Link (10 minutes). Only 18 minutes away from Johor Bahru City Centre via the Costal Highway or Jalan Skudai, Taman Perling is also less than 10 minutes from the popular Legoland Malaysia theme park. ISKANDAR INVESTMENT FOCUS propertytimes.my | Issue #16 | 11 Foresight and fortitude a winning combo for Mah Sing Group

Developer has built its success in Johor by identifying strategic locations ahead of time

Source: Ho Chin Soon map by Roznah abdul jabbar the country. ago in Johor. 2003, Sierra Perdana in 2007, which is “We entered Iskandar Malaysia in The township, which won the Best only 18km from Pasir Gudang, fol- year 2000 with the 303-acre township Landscape Award by Majlis Perbanda- lowed by Sri Pulai Perdana 2 (SPP2) ah Sing Group Bhd has of Sri Pulai Perdana, with properties ran Johor Bahru (MPJB), offers a mix two years thereafter. grown to become a house- catering to the local market,” said Mah of landed homes comprised of double- “These townships have flourished Mhold name in property de- Sing Group MD and Group Chief Ex- storey link homes, two-storey cluster and matured, and residents enjoy vari- velopment with a strong track record ecutive Tan Sri Datuk Leong Hoy Kum. homes, two-storey link semi-dees and ous facilities like new schools and new in Malaysia. This reputation has not According to him, Mah Sing intro- superlink homes as well as commer- hypermarkets nearby. They have also been attained without a reason. The duced the concept of gated-and- cial properties. seen good capital appreciation of their prominent property developer has guarded living for link homes, grand Over time, the company expanded properties,” Leong stated. been making the right decisions and entrance statements, and even a 12- its mark in the Southern region with Inspired by healthy living amidst taking immaculate steps in supplying acre Roman-inspired central garden, more successful projects. These in- nature, the 261-acre Sierra Perdana of- the fundamental properties across which were all unheard of 13 years clude the 168-acre Austin Perdana in fers a unique lifestyle adventure-park 12 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS

community, with lush landscaped Meridin Suites Residences, launched townships in Iskandar Malaysia and ous townships with this new land,” grounds and dedicated parks on top in July last year; and the low-density to replenish township lands in good he said. of a wealth of innovative and unique Block B, with only six units per floor, locations, the developer recently pur- He noted that the sheer size of features. launched in conjunction with the chased 1,352 acres of land in Pasir the development site provides ex- The conquest continued in Iskan- opening of the Meridin @ Medini Sales Gudang, Johor. citing possibilities that will display dar with SPP2, which embraces the Gallery. Leong said, the acquisition of this Mah Sing’s township master plan- concept and lifestyle of garden resort Phase 2 consists of a tower of Me- land, the biggest piece of township ning capabilities. living amidst a relaxed and care-free ridin Small office-Versatile offices land thus far, marked Mah Sing’s fifth “Other than residential and com- setting. Residents and guests enjoy a (SoVo) and two towers of Meridin township in Johor since the year 2000. mercial components for the town- healthy and truly enjoyable experi- Suites, the hospitality component of Named Bandar Meridin East, it will ship, we can explore retail, recrea- ence enhanced by an exclusive club- the project. Phase 1 and Phase 2 are boast a gross development value of tional and even industrial elements house complete with swimming pool linked to the retail podium of Meridin RM5 billion. once we do a more thorough mar- and gym. The 73-acre upmarket resi- Walk. “We are confident that we can ket survey and consumer needs dential component is fully equipped With the success of Mah Sing’s replicate the success of our previ- analysis,” Leong added. with gated-and-guarded facilities and will be another showpiece of Iskan- dar Malaysia. Mah Sing’s projects in Johor Bahru It is incomprehensible how Mah Sing could foresee the potential of Project name Project description Launched Project size GDV locations in the vicinity years before Iskandar Malaysia was even Austin Perdana launched. An integrated township in 2003 168 acres RM672 million Lake Pines In 2011, the company acquired the Mount Austin, Tebrau, 10km 206-acre site for Mah Sing i-Parc. The from Johor Bahru City Cen- project offers an innovative concept tre. of multi-functional niche industrial lots. Sierra Perdana A mixed-development fea- 2007 261 acres RM672 million “Prior to Mah Sing i-Parc, industri- turing serviced apartment, alists only had two options: to either two- and three storey shop purchase land to build their own fac- offices and two-storey ter- tory or to buy a factory lot in an indus- races with a safari entrance, trial park that had set specifications lush landscaped grounds and by the developer,” said Leong. dedicated parks. “With i-Parc, we offered a 4-in-1 function that combined back-end Sri Pulai functions like production and ware- Mah Sing’s maiden township 2009 73 acres RM262 million Perdana 2 housing with front-end functions like in Johor that features lifestyle show gallery and corporate office.” amenities like the 12-acre Mah Sing also offered detached landscaped central park and semi-detached factories, three- which won the Best Land- storey shops to meet the needs of the scape Award by MPJB. workers and industrial land for indus- trialists who wanted to create their Mah Sing i-Parc Industrial project that offers 2012 206 acres RM694 million own factories from scratch. buyers units with four-in-one The location, which is a mere kilo- function, combining back- metre away from the Port of Tanjung end functions like produc- Pelepas, unlocks potential of a diver- tion and warehousing with sity of business types that could be front-end functions such as a based there. show gallery and corporate Meridin @ Medini, an 8.19-acre office. purpose-built development, offers a “live, work, relax and rejuvenate” Meridin @ Medini A mixed development that 2013 8.19 acres RM1.1 billion concept to property buyers. The proj- offers the live, work, relax ect is being built in two phases – and rejuvenate concept. Phase 1 comprises three towers of ISKANDAR INVESTMENT FOCUS propertytimes.my | Issue #16 | 13

Meridin Suites Residence Project description: A mixed development that offers the live, work, relax and rejuve- nate concept. Launched: 2013 Project size: 8.19 acres GDV: RM1.1 billion

Sri Pulai Perdana 2 Austin Perdana Lake Pines Project description: Mah Sing’s maiden township in Johor that fea- Project description: An in- tures lifestyle amenities like the 12- tegrated township in Mount acre landscaped central park which Austin, Tebrau, 10km from won the Best Landscape Award by Johor Bahru City Centre. MPJB. Launched: 2003 Launched: 2009 Project size: 168 acres Project size: 73 acres GDV: RM672 million GDV: RM262 million

Mah Sing i-Parc Sierra Perdana

Project description: Industrial Project description: A project that offered buyers mixed-development featur- units with four-in-one function, ing service apartments, 2 and combining back-end functions 3-storey shop offices and like production and warehous- 2-storey terraces featuring a ing with front-end functions safari entrance, lush land- such as a show gallery and cor- scaped grounds and dedi- porate office. cated parks. Launched: 2012 Launched: 2007 Project size: 206 acres Project size: 261 acres GDV: RM694 million GDV: RM672 million 14 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS Pent-up demand that needs addressing

There’s burgeoning opportunity in Johor’s affordable to mid-priced housing market that developers must to pay urgent attention to

by CHRIS PRASAD current focus on high-end proper- supply figures. er and more modern abodes should ties, given that the Iskandar Malay- While the debate rages on, some the right opportunity present itself, sia plan has opened up immense market watchers point out that a financially,” said veteran market o much has been said on the potential to attract international growing number of mid-income fam- commentator and property investor issue of affordably priced buyers and reel in foreign investors ilies in Johor have been stuck in S.F. Tiang. Shousing in Malaysia’s south- – in order to achieve this, do we not what can be best described as a He said that while the supply of ern-most state, and yet, so many still have to supply upmarket and high form of “real estate purgatory”. They new medium priced units has been feel that so little has been done. quality homes? are priced out of the high-end stock scarce, the upgrader market in Jo- Opinions are naturally divided on More recently, the question has that the private sector is focusing hor has been relatively active, and the matter. Some say that in pursuit become “have we overdone it?” as on, and do not qualify for the ample those few developments that have of higher margins, developers have news reports suggest that there stock of low-end properties that offered units at between the snubbed the housing needs of those could be an overhang on residen- have been promised by government RM200,000 and RM500,000 have per- on the lower half of the income tial properties priced above the initiatives. formed particularly well. scale. Others argue that there is million mark in the not-so-distant “But there is a tremendous will “Despite this the latest Napic (Na- sound business strategy behind the future, based on current incoming among buyers to upgrade into fresh- tional Property Information Centre) ISKANDAR INVESTMENT FOCUS propertytimes.my | Issue #16 | 15

CHART 1 CHART 2 DO YOU OR YOUR FAMILY PLAN TO DO YOU OR YOUR FAMILY NEED PURCHASE A HOME? “AFFORDABLE HOUSING”?

Yes, within a year 12%

Yes, in 1 -­‐ 2 No years 26% 15% No Yes 55% Yes, in 3 -­‐ 5 48% years 11% Maybe 26% Yes, a6er 5 years 7% figures show that there will be an “Do you plan to purchase a home?” increased supply of high-end prop- and “Do you or your family need af- erties in the future, and a decreased fordable housing?”, the survey fur- supply of affordable units. Basic ther revealed that among those economic principles tell you that who said they did not plan to pur- you should sell where there is strong chase a home, a high 62% within CHART 3 demand, so it is a little perplexing this group still stated there was a why developers have not turned need for more affordable housing. CROSSTABULATION: DO YOU OR YOUR their attention to the low- to mid- Also, a comparatively high 63% of FAMILY NEED priced sector,” he said. respondents who plan to purchase “AFFORDABLE HOUSING”? a home also said that they needed THE NUMBERS TELL A STORY affordable housing options. The Shedding more light on the matter numbers strongly suggest that a is a recent survey public opinion large a majority of the respondents Yes Maybe No survey on the issue of affordability would potentially be in the market in Iskandar Malaysia that was con- for a new home if they had the ducted by strategic research and means to afford it. 63% data analysis firm Crossroads Pub- The survey also found that Jo- lic Research Sdn Bhd. horeans increasingly perceive that 35% 38% The survey, which randomly en- they cannot invest in Iskandar giv- 25% 27% gaged 1,000 people living within the en the relatively inflated high pric- Iskandar region and bordering dis- es. 12% tricts (representing a population of Nearly one third (32%) of those about 1.9 million), found that 38% surveyed attribute the lack of af- of its respondents were planning to fordably priced housing in Iskandar Yes No Plan to Purchase a Home buy a home within a five-year peri- to the profit motive of developers, od, however a higher 74% indicated which cannot be served by the de- that they would consider buying a velopment of lower priced units. home if it was within their afford- In the same vein, a high 25% be- ability range. lieve that the Iskandar develop- By cross-tabulating responses to ment plan does not consider the 16 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS

CHART 4

HOW MUCH CAN YOU OR YOUR FAMILY AFFORD TO PAY IN MONTHLY MORTGAGE PAYMENTS?

41% 40%

15%

3% 1%

Below RM500 RM500 -­‐ RM1000 RM1001 -­‐ RM1500 RM1501 -­‐ RM2500 More than RM2500

TABLE 1 CHART 5 WHAT DO YOU THINK THE MAIN FOCUS OF DEVELOPMENT IN ISKANDAR IS?

40%

27%

20%

8% 5%

A"ract foreign A"ract foreign Increase Create jobs Other(s) investors direct Johor's growth and business investment opportuni

recent land transactions such as investment and Johor’s overall the RM8 billion purchase of a 37- macroeconomic growth. acre parcel by Sun Properties at “Given the true aim of Iskandar Danga Bay. Malaysia, which is to raise the so- Only 20% of respondents felt that cio-economic standards of those in Iskandar was focusing on them the region through the creation of a through the creation of jobs and regional economic hub, I think we Source : From a research paper by Dr Daniele Gambero business opportunities, while an urgently need to change this som- alarming 75% felt that Iskandar had bre public perception. And the way needs and priorities of low-income es in the south of Johor are too high little to do with the day-to-day live- to do that is to address their needs families. to feasibly develop affordable hous- lihood of locals, focusing instead in tandem with national economic Relatedly, 22% feel that land pric- ing. Adding to this perception are on foreign investors, foreign direct goals,” said Tiang. ISKANDAR INVESTMENT FOCUS propertytimes.my | Issue #16 | 17

Many Johoreans believe that Iskandar Malaysia primarily focuses on drawing foreign investment.

ALL ABOUT PERSPECTIVE A possible cause for the current sce- nario in Johor is a mismatch on the definition of “affordable housing” at a national level. This point of view has been put forward by renowned property speaker and CEO of property mar- keting consultancy REI Group of Companies Dr Daniele Gambero. In a research paper submitted to PropertyTimes.my (full article to be published in our next issue), he pointed out that by looking at a Recent land transactions at the Danga Bay area reflect escalating land costs in Johor. steady growth of the economy and analysing the individual state eco- nomic drivers, we can see that there “Simply put, what is affordable for (see Table 1 for more) respondents felt that affordably is differentiated population move- middle-class citizens of Selangor is Here again, the Crossroads survey priced housing should be below ment and income trends. totally out of reach for those who live offers some surprising insight into RM150,000, which is significantly dif- In other words, he said that the and work in Pahang,” he said. the perception of affordability in Jo- ferent from the official definitions definition of “affordable” will vary In the Johor context, Gambero’s hor. provided under the PR1MA housing quite dramatically based on the in- research article found that based on When asked “how much can you scheme and the Ministry of Finance come per capita of each state or re- the average annual income per capita or your family afford on monthly pay- driven Skim Rumah Pertamaku gion. of RM24,000, the region of affordabil- ments?” an astounding 81% respond- (SRP), which range between “Malaysia has performed pretty ity for the state’s housebuyers should ed that could only afford RM1,000 or RM100,000 and RM400,000. well in the past decade, and the out- be RM160,000 (based on individual less. Of the respondents, 37% re- Perhaps the first step in solving look for the next several years re- income) or RM240,000 (based on vealed that they have monthly house- the affordable housing issue in Johor mains positive. However, if you look household income). By contrast, the hold income of less than RM3,000 is to seek equilibrium between man- at average individual incomes across average household in Kuala Lumpur and 31% said that they were between aging the expectations of the masses the board, you will note that it is im- can afford units priced up to the RM3,001 and RM5,000 household and supplying an appropriately de- possible to have a nationwide param- RM720,000 because of an yearly in- income bracket. fined volume of stock to cater to eter on affordability,” Gambero said. come per capita of about RM73,930. Furthermore, 72% per cent of the their needs. 18 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS Chantique

I&P introduces phase three of Taman Pelangi Indah, targeting expanding families and first-time buyers

The most compact and affordable amongst the three types of layouts offered is Type A, selling from RM500,000. by Viknesh Ashley Clarence most people today will have to Most properties in this state are meet their individual require- search areas far from urban lo- freehold, and practically priced, ments. cales, which may also lack in the and a good investment for passing An established township is al- reaming to own a landed basic facilities required for a on to the next generation. ways a better choice to buy or in- property to fit a growing growing family. There are many choices avail- vest in property. Close to two de- Dfamily? This may be just a Now, how about considering able in Johor, thus buyers need to cades ago I&P Group Sdn Bhd pipe dream for first time home- the southern region of Malaysia? carefully pick from the available acquired a massive 939-acre plot buyers looking for such property Specifically in Johor, where sev- properties, which will differ from of freehold land in Tebrau, Johor within the Klang Valley, where eral developments are available? one developer to the other, to Bahru, and in 1997 began develop- ISKANDAR INVESTMENT FOCUS propertytimes.my | Issue #16 | 19

Chantique

Description: 939 acres township Price: RM500,000 onwards No. of units: 71 Services: NA Phase : 3 Type: Type A- 1,793sq ft to 1,893sq ft (4 bedrooms) Type B- 1,942sq ft to 2,045sq ft (4 bedrooms) A mere addition of less Type E- 2,064sq ft to 2,202sq than RM50,000 will ft (4+1 bedrooms) provide buyers with the option of purchasing Service charge: larger homes with built-ups ranging between Decided by JMB 1,942sq ft and 2,045sq ft (Type B). Loan repayment: Minimum based on 90% margin, 5% interest, (-1.6%) repaid over 30 years = ing Taman Pelangi Indah, which RM2,415 monthly (minimum) now stands to welcome more de- Completion date: Q4 2016 velopment. This township commands a feel Incentives: of serenity, with resort-like living stamp duty on transfer (MOT) as well as legal that the developer declared,during fee on sale and purchase the conception of Taman Pelangi agreement and Indah, would be behind the cre- disbursement will be ation of this community-centred absorbed by the developer. development. End-financiers: Taman Pelangi Indah now of- Decided by purchaser fers a range of residential and commercial developments – from Contact: +607-2181814 two-storey shop offices, single- +603-4259 7600 and double-storey terraced hous- es, two-and-a-half storey semi-de- tached units and low-cost flats. Website: Type E caters to growing families, with each unit offering 4+1 bedrooms with an www.inp.my Soon to be developed will be ensuite bathrooms to four rooms. larger-sized double-storey terraced houses in three layouts under across 3.74 acres, with Type A and RM570,000 for Type E. Enquiries: [email protected] Phase 3, which is called Chantique. units indicatively priced from Fee for stamp duty on transfer This phase will be spread RM500,000; RM536,000 for Type B (MOT) as well as legal fee on the 20 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS

sale and purchase agreement and disbursement will be borne by the developer. This RM13.2 million phase is set to be launched at the end of April, with the targeted comple- tion time being the fourth quarter of 2016.

Components Phase 3 of Taman Pelangi Indah will have 71 units of double-storey terrace units in three unique lay- outs to cater to the different re- quirements and affordability of in- dividual buyers as well as inves- tors. Type A units will range in built- up sizes from 1,791sq ft to 1,893sq ft; Type B from 1,942sq ft to 2,045sq ft; and Type E, 2,064sq ft to 2,202sq ft. Type A and Type B units will have four bedrooms and three bathrooms, while Type E units will boast four-plus-one bedrooms and four bathrooms. The entire Chantique enclave will also feature perimeter fencing to provide added privacy to the residents.

Amenities Taman Pelangi Indah is in close proximity to Johor Bahru’s pre- mier business and leisure areas of Pandan, Tebrau, Ulu Tiram and Plentong, thanks to the various access points and several high- ways that interconnect it with these areas. Taman Pelangi Indah is a popu- lar residential locale in the Kota Tinggi corridor, for it also offers limitless job opportunities, educa- tional options, medical services, The masterplan of I&P’s Taman Pelangi Indah. shopping complexes and recre- ational parks. Aeon Big supermarket and the Pan- joint. by, such as the Sunway College, Adding to that, numerous bus dan wet market are popular choices For medical services,the Regen- which started operations in 2006. and taxi services run their opera- with the locals. cy Specialist Hospital and Hospital Pelangi Indah offers two recre- tions along the corridor, making The Aeon Tebrau City Shopping Sultan Ismail offer the best in ser- ational lakes and 40 acres of land public transportation a popular al- Centre which hosts the Jusco De- vice and value when it comes to set aside as the green oasis and ternative. partment Store is a must visit for medical care. meeting point for the residents. For daily retail options, Tesco residents seeking retail therapy and According to I&P, the locality is These green areas are also where and other hypermarkets are located entertainment as it also has a 10-hall also set to become an educational children can run freely and com- close to the development, while the Cineplex and a popular karaoke hub, with schools and colleges close munity activities can take place.

22 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS

A new gem for Nusajaya Almãs @ Puteri Harbour is where business and leisure meet

Almãs @ Puteri Harbour is poised to be the largest fully integrated urban development that will offer significant investment potential.

by Roznah abdul jabbar jaya, one of the five flagship zones and – residences, suites, modern offices als and couples, Almãs Suites is a a key driver of Iskandar Malaysia, and a retail boulevard link. Added to 34-storey residential block, towering et in the rapidly growing UEM Sunrise plays a significant role this is a connection to the marina atop seven storeys of car park and a Nusajaya of Iskandar Malay- in turning this newest regional city in promenade and a 15-acre linear park. facility podium, with a stunning sky- Ssia, with a strategic location Southeast Asia into the largest fully The project comprises residential line view to be enjoyed by the resi- in a breathtakingly beautiful, award- integrated urban development that and commercial components, with dents. winning waterfront locale, one will offer significant investment po- each element complementing the A 1.1-acre eco-deck, called the E- could not ask for more from a poten- tential, from financial and business other. Deck, will be situated at Level 8 and it tial new address. opportunities to economic expansion The first phase of Almãs @ Puteri will boast a lush landscape with pavil- Almãs @ Puteri Harbour, a mixed possibilities in Johor. Harbour comprises Almãs Suites, the ions and water features. A facility po- development project by UEM Sunrise As part of this master plan, Almãs residential component which will dium will complement the E-Deck, Bhd (UEMS) offers an ideal lifestyle @ Puteri Harbour is designed to pro- form 60% of the development, and two with swimming and wading pools combination, at one ideal place. vide the residential and commercial blocks of 20-storey office towers. next to sizeable changing rooms, out- As the master developer of Nusa- components through its four features Targeting single young profession- door and indoor gyms, a reflexology ISKANDAR INVESTMENT FOCUS propertytimes.my | Issue #16 | 23

Patrons can enjoy the green features incorporated through the landscaping at Sky Garden and E-Deck.

path, a wellness terrace, an indoor trol, connected from the car park lob- high office towers atop an eight-storey purchasers. Standing on freehold half-court for basketball and a multi- by to the doorstep, residents can be podium, each with a facility deck. commercial land, Almãs Suites will purpose hall. assured of secure and swift access These modern offices, adjacent to the also appeal to Singaporeans, Japa- At Level 33, a sky garden will treat when coming in or going out, with six state government administrative cen- nese, Indonesians and local investors. every owner to an exclusive, unique dedicated passenger lifts and one ser- tre, will meet the needs of multination- The special status of “International experience overlooking a vista of the vice lift with the capacity of 17 per- al corporations, banks, financial insti- Zone” accorded to Almãs @ Puteri Har- linear park, the centre courtyard and sons serving each block. tutions and other regional corporations, bour stipulates the development to be the magestic government buildings at Banking on an impactful first im- especially those from Singapore. free of foreign ownership quotas. Kota Iskandar. Residents have the op- pression, the Almãs Suites welcomes Under Phase 2, Almãs Residences Almãs @ Puteri Harbour is acces- tion of holding social or recreational visitors in a dedicated drop-off area is expected to be ready for preview by sible through the Second Link High- activities at either the sky garden or enhanced with a water feature leading March 2014. way, Coastal Highway and the North- the E-Deck. to a warm concierge service and guest Phase 2 will consist of two blocks South Expressway. By sea, Almãs @ Almãs Suites offers three types of lounge in the lobby. of condominiums. Those who love Puteri Harbour is connected by ferry units – Type C1, Type C2 and Type C3, The project will also be subjected the sea will be charmed by this forth- services to Batam Centre and Tanjung with single bedroom, 1+1 and 3+1 to Construction Quality Assessment coming project, as occupants will get Balai Karimun of Indonesia. bedrooms respectively. System and Green Mark’s stringent a premium view over the Straits of The entire development area will Type C1 offers a built-up of 520sq check, leaving no doubt about its cre- Johor. cover 12.22 acres of freehold land, ft, Type C2 comes with 896sq ft, and dentials as an environmentally-friend- Complementing all these, a life- with a gross development value of Type C3, 2,221sq ft. Prices are kept af- ly enclave. style retail boulevard consisting of 44 RM1.6 billion. fordable starting at only RM388,888. Almãs @ Puteri Harbour is set at a units of shoplots housed in two blocks The developer anticipates over- Type C1 and C2, with 476 units relatively competitive price range, and for alfresco dining, a bistro café, spe- whelming response for its commer- and 66 units respectively, will come yet boasts more value-added facilities, cialty stores, spas, fitness centres and cial developments in Almãs @ Puteri with one car parking bay allocated for such as Traders Hotels, Port of Puteri the like will inject vitality to the whole Harbour, which will foster a healthy each unit, while Type C3 buyers will Harbour Ferry Terminal, Puteri Har- development. growth for its residential develop- get three designated car parks. bour Family Indoor Theme Park, Som- In fact, the Grand Retail Boulevard ments as well. Besides the standard sanitary fit- erset Puteri Harbour, F&B outlets, a that will link the suites, residences With its strategic location in Put- tings and security system, all units are private marina, a public marina, and a and offices will be one of the out- eri Harbour, a locale that is primed furnished with air-conditioners and mega yacht marina within a 500m ra- standing features that owners will be for long-term growth, Almãs @ Put- kitchen cabinets, with SMATV points dius. proud to be a part of. eri Harbour is marked as a winning as well. Also under Phase 1 will be the The developer expects Almãs concept in the current and future Under the multi-tier security con- emergence of two blocks of 20-storey Suites to be 60% occupied by owner- market. 24 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS seasoned up EcoSpringJohor and EcoSummer will deliver a variety of English-styled homes by roznah abdul jabbar

ocated strategically in the midst of prospering Iskandar LMalaysia, two new townships by Eco World Development Group Bhd are poised to be launched next month. The launch follows the success of Eco World’s maiden project in the region – EcoBotanic@Iskandar Ma- laysia, which was launched last Sep- tember. The latest projects, called the EcoSpring@Iskandar Malaysia and EcoSummer@Iskandar Malaysia, will target different markets. Eco World’s CEO, Datuk Chang Khim Wah, said that these projects, which will have different architec- tural features, are both located on a Lucky owners of EcoNest will enjoy the most spectacular views of the Johor 600-acre site with a combined gross skyline. development value of RM5 billion. According to a representative of RM1.8 million and RM2 million re- Eco World, EcoSpring, which will spectively. take up 400 acres of the total site, The latest components of Eco- will comprise cluster homes, semi- Botanic, which comprises serviced detached houses and bungalows de- apartments and boulevard, is cur- signed after English cottages. rently open for booking. EcoSummer, which takes shape The serviced apartment compo- on 200 acres adjacent to EcoSpring, nent, called the EcoNest, is a private will offer double-storey link houses low-density development with a for buyers along the lines of English spectacular view of the skyline of colonial-styled houses. Nusajaya, Johor. EcoSpring’s cluster homes, with Located at the heart of Nusajaya, EcoBotanic@Iskandar Malaysia is the developer’s maiden project in the region. built-up areas of 32ft by 80ft and 35ft EcoNest is adjacent to EduCity, by 80ft, will be priced from RM1.1 which is a prime destination for edu- lar, including Singapore, Johor Bah- at the end of the year, with 200 units million, while the semi-dee units, cation. ru city, Legoland Malaysia, and most of semi-detached houses and bun- with built-ups from 42ft by 80ft, are The apartments units, priced at notably, EduCity – a prime location galows, indicatively priced at RM2 indicatively priced at RM1.6 million. RM800psf, is offered in sizes ranging for quality first-class education. million and RM3.5 million respec- Chang said EcoBotanic received from 582sq ft to 1,238sq ft. EcoBotanic is also minutes tively. good response, with all 624 units EcoBotanic is strategically lo- away from major highways, like the “Our next move is the Kota Ma- from the first phase sold out. This cated in the thriving kernel of Iskan- Second Link Expressway and the sai area, as we still have a large comprised cluster houses and semi- dar Malaysia, neighbouring some of new Coastal Highway. tract of land there of about 1,000 detached houses priced between the most prominent destinations in Chang said that the next launch acres, and the area has good growth RM900,000 and RM1.3 million, and the south of the Malaysian peninsu- for the Nusajaya project would be potential,’’ Chang said. ISKANDAR INVESTMENT FOCUS propertytimes.my | Issue #16 | 25 SP Setia growing from strength to strength With its commitment to creating environments for well-balanced living by Aiemax madehi nation of chic, contemporary home designs set within landscaped green- P Setia Bhd was among the first ery. A modernistic twist is immersed few big ticket national develop- for family living, with striking architec- Sers to see potential in Johor, tural elements that include rooftop years before the concept of Iskandar garden terraces, indoor water features, Malaysia was conceived. It found quick built-in courtyards and double volume success with the application of devel- porches. opment ethos that balances the four One example of SP Setia’s marvelous landscapes. areas of human activity: Live, Learn, Setia Business Park Work and Play. • Merging environmental aware- the heart of Iskandar Malaysia. Being • With 15% of the total land area It is this philosophy which resulted ness with a thriving business environ- both 10 minutes away from the city reserved for the cultivation of flora, it in a comprehensive range of products ment is no longer hypothetical with centre and Singapore makes Bukit In- presents an opportunity to live in one to suit market variables, from self-con- this centrally located office, factory dah one the most sought-after address- of the most unique eco townships. Ma- tained townships to upscale boutique and warehouse zone that is modern, es in Johor Bahru, offering a live-learn- jestic waterfalls around the develop- developments. well-planned and looks nothing like an work-play environment with its ment create a steady pattern of endless The developer continues to be a industrial zone. In addition to high comprehensive range of amenities and rhythm to drown out the hustle and strong player in the Johor market, with speed broadband and world-class tele- facilities. Its outstanding feature of bustle of city life. Linking the four pre- a string of successful concepts that will communications, Setia Business Park’s lush greenery, which includes an cincts of two- and three-storey houses keep it busy in the state in the years to green designs are engineered to reduce award-winning 20-acre town park as is a linear garden concept, binding the come. heat, enhance natural ventilation and well as small parks, gardens and ma- rear gardens of all residents into a net- Among its key projects are: provide for efficient water use through ture streetscape, caters to different work of dazzling green park connec- recycling systems, thereby making SP lifestyle needs, from serviced apart- tors. Setia Eco Gardens Setia one of the pioneers of an ecologi- ments, terrace houses and garden vil- • The award-winning enclave in Is- cally-friendly industrial region within las to semi-detached houses. Setia Sky 88 kandar, which offers an eco-living ex- Iskandar. • Set to be the enticing entrance perience within a tranquil rainforest Setia Indah statement to the southern gateway and environment of four precincts of dou- Setia Business Park II • Strolling along an expansive lake a landmark of Johor Bahru City Cen- ble-storey units in a gated-and-guarded • Modelled after Setia Business lined with manicured grounds sur- tre, this serviced apartment block lo- enclave to ensure privacy and peace of Park as a benchmark, this is another rounded by verdant landscapes, this cated at the imminent Jalan Dato mind within this 948-acre develop- eco-friendly development catering spe- residential development was designed Abdullah Tahir, featuring a unique de- ment; cifically to businesses that have strong to combine the sophistication of an ur- sign that retains the highest sense of green credentials as well as clean man- ban, luxurious lifestyle with lakeside privacy. Setia Tropika ufacturing facilities. living that lulls one into a peaceful en- • A township that strives on inno- counter with lush green gardens and In addition to that, SP Setia’s Cor- vation to provide a lifestyle that is Bukit Indah grand views of the stunning land and porate Communications head Diana above the rest, it spans 740 acres of • Having launched nearly two de- waterscapes to heighten one’s lakeside Chin said, “You’re sure to expect prime land, showcasing modern-day cades ago, this township has matured living experience. launches of new phases on the on-go- living at its best with the perfect combi- into a vibrant and verdant area within Setia Eco Cascadia ing project developments in Johor.” 26 | Issue #16 | propertytimes.my COLUMNIST Gambero’s Property Secrets Bye-bye BLR Hello BR Bank Negara finally announces new reference rates to take effect on January 2nd, 2015

Indeed it is about time for this to happen as the current framework which allows banks to release differ- ent mortgage offers based on proj- ects, types of properties, financial stability of the borrower and so on is not sufficiently transparent for the by Dr daniele gambero consumers. It will be interesting to see within the next 10 months how banks will he long-awaited announce- react to this new guidelines and how ment by Bank Negara was Tgiven on March 19th. It has been confirmed that effective REGIONAL INTEREST There has been re- January 2nd 2015, RATE peated news about a the Base Lending possible touch- up Rate (BLR) will of the BLR that has be replaced by been remaining sta- Base Rate (BR) ble for more than as the main refer- three years now. ence rate for new However, have all retail floating the new stringent loans. rules not been Bye-bye to the enough without the much-loved BLR introduction of this minus (for mort- heavy additional gage on residen- curbing of BR? tial loans only) and welcome new they will be able to remain competi- Compared to our BR. A gradual introduction is ad- tive in a much more transparent neighbours, one vised though, because in the last few market. Definitely the consumers might say, we are months, the Malaysian property stand to benefit from the new BR still the second market has been beaten and bitten framework which will allow them to cheapest, but every other day with a totally new better understand the borrowing/ please, look at the set of rules, restrictions and regula- lending mechanisms that leads to a general situation tions that it seems like a crackdown, more judicious final decision. and the Federal breeding a “wait and see what is Anyway, although this has been on the new BR as it simply inter- Government’s plans of expansion coming next” feeling across the mar- expected for some time, we will changes the old BLR for new loans and make a wise decision… ket. need to wait for another nine approved after January 2nd, 2015 On January 16th, 2014, Bank Neg- months plus to see how the market while it looks like the old ones will Dr. Daniele Gambero, CEO and ara issued a consultative paper to all will react. Personally, I prefer de- be maintained at the agreed rate that co-founder of REI Group of Compa- Malaysian banks on a new reference fined and ratified information as op- will only fluctuate following the BR nies, gives presentations on the rate framework to replace the BLR posed to yet-to-be-confirmed and ups and downs. property market and welcomes to elicit their comments and propos- pending-approval ones. My question now is: what is next feedback at: Daniele.g@reigroup. als before the end of February. I cannot see any backfire effect in Bank Negara Malaysia’s plans? com.my ISKANDAR INVESTMENT FOCUS propertytimes.my | Issue #16 | 27 Wake up and smell the coffee

by GUNAPRASATH BUPALAN [email protected]

do not know which is sadder : de- velopers who seize every oppor- Itunity to raise property prices, or the total oblivious nature of some people who choose not to change with the times. Some of you may already be on the same page as me, but others may be scratching their heads right now saying, “Dude, what in heaven’s name do you mean?” Well, let’s take some time to di- gest this topic. Property prices have shot up – yes. This is simply due to increasing land value. It didn’t just happen overnight, and surely not just to one particular area in Malaysia. Land prices have not just risen The survey on public opinion re- housing and “low-cost” housing. growing areas such as Johor, or ma- nationwide but also in many places vealed many interesting and some- Even some low-cost housing projects tured areas such as the Klang Valley across the globe, though for us this what astounding results. In particu- today exceed the RM100,000 mark. and Penang, is just impossible to phenomenon is particularly evident lar, this one: that 46% of Johorians For the uninitiated, it is a little factor find. in areas such as the Klang Valley over perceive affordable housing to be we call “inflation”. But this sparks other questionsz: the course of the last five to ten between RM50,000 and RM100,000, Yes, there was a time when you Is there not enough low-cost housing years. and another 26% feel that affordable could not compare the modernisa- in JB to accommodate the average So, logically, we have had five to housing should be below RM50,000. tion of Johor to that of the Klang Val- income earner? Are developers ne- ten years to adjust to the new level of Adding to this, a sizeable portion ley, but today, with the vested inter- glecting this market segment and pricing, which some people took into cite that an their ideal repayment for est of government and international only looking at profiting from inter- consideration and some didn’t. Those a housing loan is about RM500 per investors, the state has been primed national investments? Are we blind- who didn’t are still stuck in a time month. Most of those who responded for growth. And in order for this to ed by the speculation and neglecting capsule that’s been left to rust since as such revealed that their average happen, land prices need to rise in those who buy to stay to accommo- the early 2000s. household income was between ei- tandem, hence the rise in house pric- date investors? Is the average Jo- What brought me to share my ther under RM3,000 or between es, hence a shift in the affordability horean not earning enough for to- thoughts on this matter is a recent RM3,001 and RM5,000. bracket. day’s world? survey conducted by Crossroads I would agree with this percep- So my conclusion is simple – Great topics for discussion, so Public Research Sdn Bhd on our be- tion... 20 YEARS AGO! wake up and smell the coffee. You drop me a note with your thoughts on half (highlighted in greater detail on Let’s get real. There is a distinct have to realise that RM50,000 for a the matter – it may just become the page 16). difference between “affordable” mid-range property in this age in topic of my next column. 28 | Issue #16 | propertytimes.my a NEWS

Another mammoth project boost for Iskandar UEM Sunrise and KLK Land team up to build RM20 billion in properties by roznah abdul jabbar ergy Sdn Bhd, with KLK retaining a 60% ports of Tanjung Pelepas and Pasir Gu- services and logistics. controlling stake, on land that has been dang, as well as the Senai International The entire project is expected to be valued at RM871.2 million, or RM- Airport, and it is accessible via a num- completed in 15 years. EM Sunrise Bhd and KLK 400psf. ber of highways and by railway. At the signing ceremony, UEM Sun- Land Bhd (KLK) have agreed Gerbang Nusajaya is currently According to UEM Sunrise, Fraser rise COO for commercial properties, Uto jointly develop large parcels home to a 519-acre integrated technol- Metropolis will be a freehold mixed Raymond Cheah, said the two projects of land in booming Iskandar Malaysia, ogy park, jointly developed by Ascen- development, with 40% dedicated to aspire to contribute to the nation’s for- Johor. das Land International Pte Ltd and industrial components, 50% residential eign direct investment and gross na- The first is a 500-acre mixed devel- UEM Sunrise. This park aims to be an and 10% commercial. In total, the de- tional income, as well as create job opment on freehold land in Gerbang entertainment hub for motor sports velopment will have a GDV of about opportunities. Nusajaya, which will be located at the enthusiasts as well, with an integrated RM15 billion, and an average land val- Cheah said a range of affordable to gateway to the Nusajaya township and multi-purpose FASTrack Iskandar by ue of RM80psf. high-end residential units would be close to the Linkedua Expressway. FASTrack Autosports Pte Ltd under- The project, to be developed by built over the broad 2,500 acres of the It was revealed that the develop- way. Aura Muhibbah Sdn Bhd (60:40 owned Fraser Metropolis, with a foreign buy- ment will comprise residential and The second project, called Fraser by UEM Sunrise and KLK respective- ers target of 50%. commercial components with an esti- Metropolis, is located on 2,500 acres at ly), is envisioned to be the next modern KLK CEO Tan Sri Lee Oi Hian said mated gross development value (GDV) the northern tip of the Iskandar Malay- city within Iskandar Malaysia, with a the JV was a new milestone for KLK’s of RM5 billion. It will be fully complet- sia region and within KLK’s Fraser series of enterprise zones that will inte- property division, as it represents the ed in eight years. Estate, which is 30 minutes away from grate manufacturing enterprises with company’s maiden foray into Iskandar, The development is to be carried the Johor Bahru city centre. an array of services and businesses, an important economic growth sector out by a joint-venture entity, Scope En- This site is also located close to the including high-tech manufacturers, IT of Johor. 26th prime city

ased on the recent Knight positions, currently standing at the who hold a net Frank Wealth Report 2014, 56th place of the PIRI. worth of assets to- BKuala Lumpur has moved up In contrast, Bangkok remains quite talling USD30 mil- two places in the Prime International unchanged, merely dropping by one lion and above, in- Residential Index (PIRI) to the 26th level to the 15th position. cluding the position this year. The High Networth Banking, unit individuals’ resi- The index shows that property of the United Overseas Bank (UOB) dences. prices in 2013 for the federal capital Malaysia said that Malaysia still re- The wealth re- have increased by 5.5% compared to mains attractive for investors both lo- port revealed that the previous year which recorded an cal and foreign who trust in Malaysia’s nine ultra-rich indi- increase of just 1%. long term economic potential. viduals have joined Jakarta still heads the index, retain- It pointed out that compared to the Ultra-High-Net- Now in its eighth year, the wealth report is an invaluable insight into the global wealth management industry. ing its number one position in the 2013 other economic hubs like Hong Kong Worth-Individuals annual report. and Singapore, property prices are still (UHNWI) as of last year, giving Malay- 206 people. For two of the most expensive cit- relatively low. sia a total of 557 ultra-rich people. According to Sarkunan, the ultra- ies in the world, a significant drop in The leading independent global On top of that, Knight Frank Malay- wealthy came from sectors like oil and the ranking is recorded. Hong Kong, property consultancy also forecasted sia MD, Sarkunan Subramaniam said gas, information and telecommunica- which ranked 16th in the previous year, that Malaysia’s ultra wealthy will in- that three more individuals are added tions technology as well as manufac- is positioned 64th in 2013. Singapore crease to 33% by the year 2023. It de- to the higher wealth bracket, growing turing and services sectors. – Viknesh follows a similar trend, dropping 26 fined the ultra wealthy as individuals the super ultra wealthy commune to Ashley Clarence NEWS propertytimes.my | Issue #16 | 29

A new commercial face for Johor Bahru

EcoSpring and EcoSummer will deliver a variety of English-styled homes

JOINT-VENTURE between above Gadang’s market capitalisa- Gadang Holdings Bhd sub- tion of RM200.63 million. A sidiary Achwell Property The proposed project is expect- Sdn Bhd (APSB) and Capital City ed to enhance the group’s income Property Bhd will see the construc- profile in Johor Bahru, trailing its tion of an integrated development launch of Jentayu Residensi, a free- on 84 parcels of land totalling 12 hold commercial and residential acres in Johor Bahru City. development in Tampoi in 2011. The project is expected to have Gadang expects to ride on the a gross development value (GDV) advantages of the project’s strate- of RM1.8 billion and will include gic location along Jalan Tampoi three 15-storey tower blocks com- (adjacent to Damansara Aliff) and prising Small office-Home offices, Johor Bahru, with convenient ac- two tower blocks of hotel suites cess through the interlinking of and a 10-level retail podium with highways, most notably to Tebrau floors for car parking. Highway and the Skudai Highway. According to Gadang Holdings, The upgrading of Jalan Tampoi Capital City will pay APSB a total into a double-carriage highway has The land is situated about 8.5km from the centre of Johor Bahru City. value equivalent to 16.7% of the fi- significantly improved traffic flow, nal GDV of the project, which trans- while the new Pasir Gudang High- clude Plaza Angsana, Jentayu Res- land Malaysia, Johor Premium lates to RM324 million, including way-JalanTampoi link has also idensi and Bandar Baru UDA. It is Outlets and Senai International the market value of the land pegged shortened travel time between also situated close to Danga Bay, Airport. at RM57.5 million. these locations. which is about 7km away. The development’s proximity to Based on the estimated RM1.8 The land is situated about Located within a 30km radius various tourist attractions is also billion GDV, APSB is entitled to 8.5km from the centre of Johor are other prominent sites such as expected to enhance prospects for RM300.6 million which is already Bahru City, with amenities that in- Nusajaya, Puteri Harbour, Lego- its hotel suites. – Kent Tan

Airport cities on show

he Airport Cities World cial benefits and serve as an eco- This year’s event has to date ticipation from a number of high Conference and Exhibi- nomic boost, where they can de- received sponsorship from Den- ranking speakers such as Patrick Ttion, hosted by Malaysia velop individually as niche ver International Airport, KwaZu- Ong, Chief Executive Officer of Airports, will showcase unique business and tourist destinations. lu-Natal, Taoyuan International Macau International Airport; Ra- ideas with some of the most revo- The event also aspires to pro- Airport, Parsons Brinkerhoff, fael Echevame, Director, Econom- lutionary airport city and aeropo- vide the most complete scope of Hubstart Paris Region, Aeropolis ics and Program Development for lis models across the wider Asia information from CEOs, senior Group (Great Ocean Group), ACI World; Benito De Leon, Asso- region, along with KLIA’s very representatives from airports, air- Arup, UK Trade and Investment ciate Administrator for Airports, own aero city development plan. port city developments and other and Edmonton International Air- FAA; and Caspar Baum, Partner, The conference will point out stakeholders involved in develop- port. Head of Aviation- Asia for E C Har- how aero cities can yield commer- ing Airport City projects. The conference will see par- ris. – Viknesh Ashley Clarence 30 | Issue #16 | propertytimes.my ISKANDAR INVESTMENT FOCUS Changing face of Malaysian “art-chitecture” The socio-economic transformation reflected through architecture by prisca teh

lmost every major city in the world is symbolised by an icon- Aic building – the Sydney Opera House, the Eiffel Tower and Colosse- um, among others. For the longest time, Kuala Lumpur (KL) city was de- picted by the image of the Sultan Abdul Samad building which was inaugurat- ed in 1897. At the draw of the millenni- um, this image began to be replaced by Serina Hijjas proves she is a force to be the Petronas Twin Towers. reckoned within a male-dominated The change revealed an evolution field. not only in our national architecture, but also a socio-economic transforma- prior to Independence, most of the ar- tion, from a period of colonialism to an chitectural public buildings were de- age of industrialisation and technologi- signed by British architects resembling cal advancement. Mughal and colonial architecture from The relationship between the archi- their past expansions. tectural fashion of a country and its “The Kuala Lumpur Railway build- inhabitants may not be as plain as how ing (1910) and KTM headquarters are the clothes make the man, but as Win- the best examples of the colonial Mu- ston Churchill once said in his address ghal architecture in the beginning of to the English Architectural Associa- the 20th century. Driven by style and a tion: “There is no doubt whatever show of power, these buildings were about the influence of architecture and designed by British architects from the Menara Maybank was one of the first skyscrapers that marked Malaysia’s reckoning structure upon human character and Malayan public works department,” into the international market. action. We make our buildings and af- she said. buildings, which often spurned natural glass and steel. terwards they make us. They regulate “In the new modernist era of post- light and ventilation. “Modern high-rises like DayaBumi the course of our lives.” independence came our national build- “One could almost say they were (1982) and Menara Maybank (1986) For some insights into how the ing icons like the Parliament building among the first tropical modern public pierced the skies as emerging high-rise evolving trends of the urban landscape (1963) and National Mosque (1965),” buildings of post-independence,” she buildings, the first of many that ensued have changed us and vice-versa, Real she added, pointing out that these two said, also highlighting that the parlia- during Malaysia’s fastest growth period Reserve spoke to one of the few lady edifices were constructed in consider- ment building employed sun-shading of the 80’s and 90’s. The Petronas Twin Malaysian leading architects who has ation of natural daylight and ventila- devices. Towers would be deemed a postmod- lent a hand in painting the country’s tion, even in those early years when the After independence, Serina stated ern structure when it was completed in “art-chitectural canvas” through icons concept of sustainability and green that in the past 57 years, the nation has 1998 with its symbolic connotation and such as the Menara Telekom Malaysia, buildings were still distant. moved from modern architecture to form, while the Menara Telekom is the Securities Commission Building and This was especially noteworthy post-modern to contemporary and pinnacle of contemporary green archi- Sasana Kijang. considering that at the global level, fos- even international style, characterised tecture along with the Mesiniaga Tow- According to Serina Hijjas, Director sil fuel-derived electricity led to how by rectilinear forms, open interior er,” she cited. of HIJJAS Architects and Planners, we design air-conditioned modern spaces as well as large expanses of She noted that the appeal of the in- ISKANDAR INVESTMENT FOCUS propertytimes.my | Issue #16 | 31

Asked on what brought about the context and social [needs], [in addi- various revolutions, Serina opined, tion to] technically well- made archi- “Cultural relevance to the Malaysian tecture within our construction capa- context is one of the influences that bilities and sound environmental brought about these changes, apart strategies will show a more indelible from adoption of climate concerns in architecture,” she enunciated. designing. Economic viability also af- The “cradle to cradle” concept em- fects the ultimate selection of design. ploys the biomimetic approach which Another contributing factor to these protects and enriches the ecosystems changes is political aspirations of being by creating building systems which world-class and global.” are not only efficient but also essen- As for the present times, Serina tially waste free. voiced that here and now there should On the future, she asserted, “True be a bigger push for “rethink”. sustainability and the concept of ’cra- “For me it started 20 years ago dle to cradle’ in architectural designs with a concern for sustainability and a is what will really change the face of conscious effort to address energy- architecture; a return to what the Ven- efficiency during the oil crisis. That ice Biennale 2014 aspires for us to has now expanded to be more than think about – fundamentals that ex- energy-efficiency but sustainability. ploit the limitations we have and We haven’t yet reached the level of come up still with something innova- true sustainability or the “cradle to tive – architecture driven by real cradle” architecture as yet. The gen- needs and not projected imagery.” eral public and architects are only grappling with the green design now, a major transi- Menara Telekom is the pinnacle of contemporary green architecture. tion to rethink how to build ternational style seems to be more In explaining the background that and relate to dominant or favourable still, saying, led to this awareness, she said, “In the the larger is- “This is perhaps due to the fact that the 1970’s the oil crisis began to rear its sues of the en- international style attracts more com- head and considerations of alternative vironment and mercial value and global, not just glo- means to energise our buildings our future exis- cal recognition.” pressed upon us. Today we are trying tence as our Serina also mentioned that numer- to catch up with the growing concern resources re- ous more examples of post-modern of the depletion of fossil fuel and re- main finite. architecture followed suit in the new sources, land, population growth and “Sustain- capital city of Putrajaya where every mobility demands, leading the country ability is defi- form of architectural language can be to finally step into a tropical or semi- nitely a trend seen. tropical contemporary architecture. that a lot are Even before “green” became a by- “We are seeing more contemporary veering to, but word in recent years, Serina has al- and innovative designs emerging now, a more mature ways been an active advocator of en- with more emphasis on tropical con- look at designs ergy efficiency and sustainability since cepts in the larger projects like TRX or architecture she joined the architectural field 23 [TunRazak Exchange], KL Sentral, PJ that display years ago. Sustainability and environ- Sentral and the Metropolis Tower [in more depth of mental aspects of design were already Johor Bahru] as we bring external ar- fundamental foremost as part of their design consid- chitects to work in the Malaysian con- design con- erations then, where the public realm text.” cerns, [while at and space are vital concerns. One example from Hijjas that best the same time] “These concerns still remain impor- displays contemporary sustainable ar- responding to Lot 348 is one good example of contemporary sustainable tant, if not more so now,” she enthused. chitecture is Lot 348 in KL Sentral. history and architecture.