TEP J2 FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY

hat Louis Vuitton is to the interna- known as the federal administrative centre for govern- tional trunk industry is what S P Setia ment bodies rather than a vibrant economic hub, it is Group Bhd is to the Malaysian proper- precisely its tranquility that makes Putrajaya an appeal- ty field. The top developer has prov- ing residential sanctuary. en itself as a sharp visionary capa- Based on the “Garden City Intelligent City” concept, Pu- Wble of identifying ideal locations where, coupled with trajaya has been planned to conserve its existing wetlands its expertise and pursuit of excellence, it churns out and tropical rainforest into purpose-gardens, recreational sought-after and highly-valued products. lakes and parks. According to Soh, out of the 11,320ha, In an exclusive interview with TheEdgeProperty.com, 650ha has been allocated for Tasik Putrajaya (Putrajaya Lake) its Divisional General Manager of Niche Development which includes 197ha of wetlands. When completed, the of S P Setia and also CEO of Setia Putrajaya Sdn Bhd, city’s landscaped framework will be formed by 12 thematic Paul Soh Hee Pin, affi rms that the reputable brand has parks with ample facilities for social, recreational and ed- a strong following of repeat buyers. ucational activities for both young and old. Ranging from Guided by the principle to be the best in all it does, its a 92ha botanical garden to an equestrian park, a compre- exceptional designs and innovative products have earned hensive sports site, an extreme sports park and adventure it several accolades including as nine-time winner of the playgrounds, there are exercise stations, jogging tracks, FIABCI Property Award, seven-time winner of gazebos and amphitheatres for picnicking, photography the FIABCI Prix d’ Excellence Award, eight-time winner and bird-watching, as well as fi shing, water rafting, boat- of The Edge Top Property Developers Award, Reader’s ing and canoeing. Digest Asia Trusted Brands Award, QLASSIC Excellence “Residents get to enjoy beautiful parks within a short Award and many others. drive,” Soh points out. Its track record is backed by successful eco townships Birthed more than 20 years ago, Putrajaya has been such as , Setia Eco Park and Setia Ecohill in purposefully planned as a liveable city with controlled , and integrated developments such as SetiaWalk density and restricted against over-development. Un- in Selangor, as well as luxury residences such as Setia der the regulation of Putrajaya Corporation (PJC), the Sky Residences and Setia Sky Seputeh in , administrative agency under the Federal Territories besides iconic developments in Penang and Johor. Over- Ministry of Malaysia, the whole area has been carefully seas, the developer’s mark of quality is noted in housing mapped out with allotted sites for government depart- “The best time to invest is yesterday,” Soh quips. projects in Melbourne and the Battersea Power Station in ments, public utilities, recreational areas, government London. It also has a presence in Singapore with its Eco and public residences, community services, infrastruc- Sanctuary and 18 Woodsville projects, as well as as in Vi- ture, modern amenities and even security features. formation, when it was commissioned in a joint-ven- etnam where it is developing its expertise of developing The eco-tourism destination is also a world-class ture with Putrajaya Holdings to build the Prime Min- eco-townships to EcoLakes and EcoXuan. venue for international events such as the Hot Air Bal- ister’s office and residence back in 1996. Thereafter, Amidst current unfavourable conditions, S P Setia’s loon Fiesta, Light and Motion Festival, Islamic Art and the JV company, Setia Putrajaya developed Precinct mettle remains proven. Its recently launched Setia Eco Culture Festival, Power Man Asia Championships, Royal 9 with government quarters and public units of dou- Templer was 100% sold and its double-storey homes in Floria and Ironman 70.3. ble-storey terrace houses, which is now a fully com- Setia Alam, launched on Aug 27, drew a long queue with In addition, Putrajaya is strategically located next to pleted cosy township. an outstanding 85% take-up. , the MSC-certifi ed city of Malaysia. “In fact, Viewing it as a privilege, Soh says: “S P Setia is proud Putrajaya itself is also MSC-certifi ed,” highlights Soh. to be associated with Putrajaya”. The appeal of Putrajaya Another township underway is Precinct 15. A stratifi ed Thus, when S P Setia steps into Putrajaya, industry The prestige of being part of Putrajaya project with 119 units, named Alam Desa, was completed watchers know there are good reasons. Though better S P Setia has been playing a major role in Putrajaya’s in 2011 and fully sold. A recent project dubbed Dwipu-

*Artist’s impression. FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY TEP J3

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Express Rail Linknk (E(ERL) Putrajaya *Artist’s impression To KLIA International ConvenCo e tionto C entreete Relish the breathtaking view of Putrajaya at the Sky Garden. tra Residences, has also achieved 100% sale. Phase 1 of Puchong Expressway (LDP), Cheras Kajang Expressway, Dwiputra Residences has already been handed over while Expressway (KESAS), Sungai Besi Highway phase 2 will be delivered end of this year. (Besraya), North South Expressway and Elite Highway. “A large majority of the buyers are owner-occupi- KLCC is 30 km away while KLIA is 35 km away. ers,” reveals Soh. Public transportation is available by the Putrajaya Ex- press Rail Link (ERL) and Nadi Putra bus. The potential of investing in Putrajaya Soh stresses that as a liveable city, the value of proper- The luxury of Setia Seraya Residences ties in Putrajaya will not diminish. “I see only upside as Setia Seraya Residences represents the city’s fashionable development continues.” address. The company states that they are “superbly de-

“The best time to invest is yesterday,” he quips. “Land *Artist’s impression. signed condominiums, optimising comfort and conven- and construction cost is always going up. If you don’t pur- ience with a unique modern elegance” within “a harmo- chase now, it will defi nitely be higher later.” Spacious lanai area of a Type C unit. nious and refreshing environment”. Soh says properties in Putrajaya has seen a steady The low-density freehold luxury residences has 363 demand with high appreciation and good rental yield. units. Priced from RM696,000, Type A has 1,002 sq ft “Though tapered down within these couple of years, with three bedrooms and two bathrooms, where all there is strong potential to grow. There is no oversupply rooms enjoy balcony views of either the forest reserve, in Putrajaya. Projected returns are about 20% to 30%. swimming pool or Putrajaya city. Type B measures 1,202 Our projects, delivered in 1Q 2016, have appreciated sq ft and comprises four bedrooms and three bathrooms, and has gained 30% appreciation. Dwiputra Residences tagged from RM805,000. Type C boasts 1,420 sq ft and has been garnering RM2psf rental. There is no sign of has three bedrooms and two bathrooms. Sold from slowing down and we are confi dent of steady increase,” RM1.001 million, it off ers a spacious lanai area and a Soh opines. breathtaking view. “Residences grow organically. The masterplan has been Situated on high ground and standing 143m with 40 established from the beginning. There is tight control of storeys, Soh is certain that Setia Seraya will be the tall- development. Backed by the government, it is riding on *Artist’s impression. est residential tower in Putrajaya. Thus, its sky garden ready-built infrastructure. As the population increases, all on level 22 will display unobstructed spectacular views. investments will experience tremendous growth. Based Olympic-sized swimming pool. As in all S P Setia’s developments, Setia Seraya is de- on the original masterplan, the projected population is signed on the philosophy of live, learn, work and play. 330,000 with about 67,000 residences when it’s fully The full-facility condominium adopts much of S P Setia’s completed,” Soh elucidates. signature where it houses a swimming pool, wading pool, “Putrajaya already has excellent accessibility with ad- kindergarten, clubhouse, water feature, refl exology path, ditional large infrastructures such as MRT (Mass Rapid children playground, nursery and BBQ area. The inclu- Transit) 2 and HSR (High-speed Rail) to be built,” Soh sion of a ladies pool off ers extra privacy by a landscaped adds. “It is a safe and secure city, with CCTVs all around, partition. The lobby holds a hanging lounge and reading monitored by the city control centre. The main roads are lounge. Each unit has two car parks. well linked to the highways.” Soh says Setia Seraya is the last public apartment in Putrajaya is also next to the matured township of Ka- Precinct 15. Attractive sales packages are off ered, and jang with established amenities. S P Setia’s Triple A Gold promotion is open until year- end, where there are substantial discounts to assist

The draw of Precinct 15 *Artist’s impression. buyers through easy payment schemes. Bumiputeras Precinct 15 is a township of 812 acres, including a 340- get a 7% discount. acre Rimba Alam Park. It is a showcase of urban forest- Barbeque space. To be launched end of November, the registration of ry combining a tropical ecosystem, nature trails and int erest has already exceeded 1,300. viewing platforms for camping and jungle trekking. Setia Seraya targets those who live in the surrounding Located to the east of Putrajaya, Precinct 15 is adja- suburbs, those who work around the areas, investors and cent to the diplomatic precinct, which is targeted for the international market, says Soh. embassy development. With a gross development value of RM280 million, it Complete amenities are close by, such as the Ala- is slated for completion at the end of 2020. manda Shopping Centre and the IOI City Mall; Serdang “It is an amazing place to live in and S P Setia is happy Hospital and Putrajaya Hospital; Nexus International to be here,” Soh enthuses. School, Universiti Putra Malaysia (UPM), Heriot-Watt University and Uniten; Putrajaya International Con- vention Centre, Putra Mosque and IOI Resort which BROUGHT TO YOU BY houses a golf course.

It is linked via the Maju Expressway (MEX), New Putra- *Artist’s impression. jaya Link, B15 Highway, South Klang Expressway (SKVE), Kajang Traffi c Dispersal Ring Road (SILK), Damansara Living and dining space of a Type B unit.

TEP 2 FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY NEWS HIGHLIGHTS from TheEdgeProperty.com

KENNY YAP | TheEdgeProperty.com Group Company, Apple Impression Sdn Bhd, GTC Travel & Tours Sdn Bhd and Guangxi Gulf Culture Star Co Ltd to kick start the RM5.4 billion gross development value Impression City project. The signing ceremony was witnessed by the Yang di-Pertua Neg- eri Melaka Tun Utama Mohd Khalil Yaakob and Chief Minister of Melaka Datuk Seri Idris Haron. Noh Omar: Study being Phase 1A of Impression conducted on utility City rakes in RM461 mil tariff s for SoHo homes SkyWorld, DBKL to upgrade in sales The government is studying the need road infrastructure at Tourism and cultural property de- to have standardised electricity and veloper Yong Tai Bhd has recorded water tariff s for residential units in SkyArena, Setapak en-bloc sales of RM461 million from all housing projects with the SoHo Phase 1A of mixed-use development (Small-offi ce Home-offi ce) concept SkyWorld Development Sdn Bhd World founder and group man- Impression City. in the country. and Kuala Lumpur City Hall aging director Datuk Ng Thien The group said in a statement on Urban Wellbeing, Housing and (DBKL) will be upgrading the road Phing. He was speaking to re- Wednesday that it has entered into a Local Government Minister Tan infrastructure leading to and from porters after the topping-off Sale and Purchase Agreement with Sri Noh Omar said at present the the SkyArena integrated develop- ceremony of Ascenda Residence, Orient Venture Properties Bhd on the housing units in these premises are ment in Setapak, Kuala Lumpur. the first phase of SkyArena, on en-bloc sale. subjected to the same tariff s as com- The works include the con- Monday. Group chief executive offi cer Boo mercial units which are higher than struction of a new 1km flyover "With the upgrading and ex- Th eEdgeProperty.com Loon said the company has ordinary residential units. from Jalan Genting Kelang to pansion plan, this will defi nitely Managing Director/Editor-in-Chief also locked in a RM412 million fi t- "Many housing developers mix Jalan Ayer Jerneh and the wid- improve traffi c fl ow and provide Au Foong Yee out contract with Orient Venture residential (units) with commercial, ening of the Jalan Ayer Jerneh the Setapak community easier EDITORIAL Properties to carry out renovation in the end those who live in the SoHo trunk road into a 100ft, four-lane access to the DUKE (Duta-Ulu Editor Lam Jian Wyn works on the property. units have to pay commercial rates. carriageway. The fl yover will be Kelang Expressway) highway," Contributing Editor Sharon Kam “The RM461 million proper- "So people who live in these apart- built by DBKL while Skyworld will said DBKL executive director Deputy Chief Copy Editor James Chong ty sales and RM412 million fi t-out ments are asking why they have to contribute RM30 million for the of planning Datuk Mohd Najib, Senior Copy Editor contract are expected to contribute pay commercial rates, when they live road widening works. who was also present at the top- Shanthi Murugiah positively to our 2017 fi nancial re- in a home ... there have been many "On our part, the 100ft four- ping-off ceremony. Writers Rachel Chew, Tan Ai Leng, sults,” Boo added. complaints to us," he said in a press lane carriageway will cost us SkyArena is a 28-acre inte- Natalie Khoo, Shawn Ng, Lum Ka Kay Art Director Sharon Khoh Yong Tai has also entered into fi ve conference held after the launch of about RM30 million and is ex- grated development with a to- Design Team Nik Edra, separate agreements with Golden Ceylonz Suites on Tuesday. The 39-sto- pected to be completed in the tal gross development value of Nurul Aida Mohd Noor Bridge, HuaXin PuHui Asset Man- rey building in Jalan Raja Chulan, beginning of 2019," said Sky- RM2.5 billion. For New Launches/Events/ agement Co Ltd, Orient Venture Prop- Kuala Lumpur was jointly developed Press Releases/News Tips erties, the 6th Engineering Bureau by Koperasi Amanah Ikhtiar Malaysia email: [email protected] of China City Construction Holding Bhd and Exsim Group of Companies. Tel: 03-7721 8211 Fax: 03-7721 8280 How do I get past issues of this weekly pullout? Email: [email protected] Go TheEdgeProperty.com ADVERTISING & MARKETING Johor to impose development charge on developers to download for free Head of Marketing and Sales Sharon Chew (012) 316 5628 Senior Account Managers The Johor government plans to im- Abd Latif Bandi said on Monday the ture and public facilities in the area other states that have long imple- Cecilia Too (012) 319 7666 pose a development charge on prop- matter was at the fi nal stage of co- resulting from the approval given to mented the charge. We expect it to Jayne Law (016) 929 3309 erty projects carried out in accord- ordination before being presented to the plan, he said after opening the be implemented next year," Abd Latif Account Managers Jayremy Sim (011) 1669 6039 ance with the provisions of Section 32 Menteri Besar Datuk Seri Mohamed Guidelines on Serviced Apartment said, adding that the charge would not Jocelyn Poo (012) 611 5626 of the Town and Country Planning Act Khaled Nordin. Planning and Mixed Development in have a big impact on property prices. Marketing Support & Ad Traffi c 1976 (Act 172). The purpose of the development Johor 2016 on Monday. Madeline Tan (03) 7721 8218 State Housing and Local Govern- charge is to accommodate provisions "The matter is still being discussed email: [email protected] Email : [email protected] ment Committee chairman Datuk to provide and improve infrastruc- and we are taking the examples from trending

NEGOTIATOR ADVISORY SERVICE now Senior Manager Elizabeth Lay Senior Associate Stannly Tan Associate Karen Wong If you have any real estate-related events, email us at [email protected]. For enquiries and listings LAUNCHES + EVENTS Events listed here will also appear on TheEdgeProperty.com. email: [email protected] GL: (03) 7721 8175/ 8172 Email: [email protected] be hosting a Halloween party at Lego games at Setia EcoHill its SqWhere Sales Gallery which Date: Oct 29 and 30 (Sat and Sun) TheEdgeProperty.com pullout is will be transformed into a fun yet Time: 10am to 6pm published by The Edge Property Sdn spooky place with the highlight Venue: Setia EcoHill Welcome Bhd. It is available with The Edge being a giant Jack-o-Lantern. Centre, No 2, Jalan Ecohill 1, Setia Financial Daily every Friday. The pullout is also distributed at more There will be exciting activities Ecohill, , Selangor than 200 offi ces, shopping complexes, to participate in like the Zombie Contact: (03) 8724 2255 condos, medical centres, F&B outlets Parade, Haunting Scavenger Hunt Join in the weekend of exciting and LRT stations in the Klang Valley. MCT’s OctoberWali and trick or treat game. Prizes are upon signing the Sale and Lego games, fun builds, contests You can also download it for free at www.TheEdgeProperty.com Date: Oct 30 (Sun) up for grabs for the best dressed Purchase Agreement. and other activities. RSVP is Time: 10am to 5pm while there will be lucky draw needed as space is limited. Th e Edge Malaysia Venue: Cybersouth Property prizes amounting to RM30,000. Sushi Making Class at Setia Gallery, Dengkil, Selangor RSVP to the numbers above. Putrajaya Galleria Launch of Bennington EDITORIAL Residences (Tower A) Editor-in-Chief Azam Aris Contact: (019) 243 5071 Date: Oct 29 (Sat) CORPORATE or (019) 683 4995 Pesisiran Residences Time: 11am to 1pm (Session A) Date: Nov 5 (Sat) Chief Operating Offi cer Lim Shiew Yuin MCT Bhd jointly celebrates Open House and 3pm to 5pm (Session B) Time: 11am to 6pm ADVERTISING & MARKETING Deepavali and Octoberfest Date: Oct 29 (Sat) Venue: Setia Putrajaya Galleria, Venue: SkyWorld Gallery @ Chief Commercial Offi cer Sharon Teh (012) 313 9056 with festive food and drinks. Time: 10am to 5pm Precinct 15, Putrajaya Setapak, Kuala Lumpur General Manager Venue: Pesisiran Residences Contact: (03) 8861 6500 Contact: (03) 4031 2999 Kingston Low (012) 278 5540 SDB’s Spooky Halloween Party Site, Bukit Pelindung, Kuantan Learn how to make your own Bennington Residences is the Senior Sales Managers Fong Lai Kuan (012) 386 2831 Date: Oct 29 (Sat) Contact: (011) 3129 1616 sushi and stand a chance second phase of SkyArena by Gregory Thu (012) 376 0614 Time: 5pm to 9pm TH Properties will be to win up to 15% rebate for Sky World Development Sdn Kamalesan Parama (012) 394 4855 Venue: SqWhere Show Gallery, Off showcasing its 2-storey semi- the purchase of Setia Seraya Bhd. Tower A of Bennington Michael Tan (012) 213 0252 Peter Hoe (019) 221 5351 Jalan , Selangor detached show units known Residences. The admission Residences comprises 296 units Creative Marketing Contact: (03) 6158 0880 as Pesisiran Residences. A fee for adults is RM15 with built-ups ranging from Chris Wong (016) 687 6577 or (016) 849 2650 minimum down payment of per person and RM10 for 1,092 sq ft to 1,761 sq ft and is Head of Marketing Support & Ad Traffi c Selangor Dredging Bhd (SDB) will only RM10,000 is required children. RSVP is needed. priced from RM600 psf onwards. Lorraine Chan (03) 7721 8001 Email: [email protected]

TEP 4 FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY NEWS EcoWorld and GuocoLand join forces for Eco World International’s IPO

HARIS HASSAN / TheEdgeProperty.com BY LUM KA KAY According to Choong, Guo- coLand has been on the lookout KUALA LUMPUR: Eco World De- for investment opportunities in velopment Group Bhd (EW Bhd) other markets beyond the four — has entered into a strategic part- Singapore, China, Malaysia and nership with GuocoLand Ltd, a Vietnam — that it is currently member of Hong Leong Group, operating in. for Eco World International Bhd’s “Th e UK and Australia markets (EWI) upcoming initial public of- offer scalability and we believe fering (IPO) on Bursa Malaysia Se- that with the right products and curities Bhd. locations, they off er reasonable Under the strategic partnership, (From left) returns. Both London and Sydney GuocoLand will subscribe a 27% EcoWorld are dynamic and vibrant global stake in EWI’s proposed listing president and gateway cities with reasonable by the fi rst quarter of 2017. Th is CEO Datuk Chang returns, high level of governance is equivalent to the stake which Khim Wah, Liew and strong rule of law. will be owned by EW Bhd at the and Choong at the “We believe that the combined point of listing of EWI. signing ceremony strengths of GuocoLand and EW The aim is to raise more than for Eco World Bhd will provide us with a strong- RM2 billion to fund the devel- International’s er platform to compete better and opment of four EWI projects in IPO. more successfully in these two mar- total, three in London, UK and kets,” he said. one in Sydney, Australia, with ence after the signing of the share- only 2% are Singaporean buyers “Hopefully this [partnership] Meanwhile, under the Share- an estimated total gross develop- holders’ agreement yesterday. so we hope the partnership with will give us an advantage over holders Agreement, both parties ment value (GDV) of £2.4 billion He added that, going forward, GuocoLand can bring in more Sin- other developers. We are still have agreed that EWI will continue (RM12.2 billion). GuocoLand will be a “full-fl edged gaporeans. very Singapore-centric but the to focus on property development “On our own, we will never grow partner instead of just a strategic “GuocoLand also has projects Singapore market is extremely beyond Malaysia while EW Bhd will big in London and that’s why we investor”. in Shanghai, China so we can also challenging. focus on Malaysia. need GuocoLand. Property devel- “We have synergies where we tap into the Chinese market via “So the aim for us is to diversify “Th is clear delineation of geo- opment is a fi nancial game after all combine our expertise and Guo- them,” he added. our earnings to have at least 50% graphical areas of operations will where we need fi nancial strength coLand’s fi nancial strength. I be- GuocoLand group president and of it coming in from outside Singa- mitigate any potential confl ict of and GuocoLand is the perfect part- lieve very much in co-branding chief executive offi cer Raymond pore,” he said, adding that currently interest situations which may arise ner,” said chairman of EW Bhd and and not one-man shows. Choong concurred. “It’s about us 50% to 60% of GuocoLand’s revenue between EWI and EW Bhd,” said executive vice-chairman of EWI Tan “Based on our customer base for tapping into each other’s market to comes from Singapore while Chi- president and CEO of EWI Datuk Sri Liew Kee Sin at a press confer- the London and Australian projects, have a larger market share,” he said. na contributes about 30% to 40%. Teow Leong Seng.

E&O set to launch Amaris Terraces By-The-Sea at Seri Tanjung Pinang

BY NATALIE KHOO “It is only a walking distance to the PENANG: Eastern and Oriental Bhd (E&O) is Straits Quay retail marina, the four-acre set to launch its latest project Amaris Terraces Straits Green public park and the Tesco By-Th e-Sea at its Seri Tanjung Pinang devel- hypermarket. Straits Quay is the very first opment in Penang this November, pending seafront retail marina spanning about the completion of the project’s show unit. 200,000 sq ft of retail space where resi- “We are calling this project Amaris Ter- dents will be able to enhance the experi- races By-Th e-Sea because some of the units ence of living by the sea with its array of are literally by the sea. Th ere are a total of 29 dining and retail outlets. Additionally, the units which comprise 23 intermediate units public park launched in 2013 is equipped while the remaining ones are corner units,” with water features, running tracks and a E&O head of marketing and sales (Penang) playground, complete with a composting Christina Lau told Th eEdgeProperty.com. site where communities and residents can Lau noted the group is still working out An artist’s impressions of Amaris learn how to compost and grow healthy the details on the pricing and will be sharing Terraces By-The-Sea. food,” Lau said. it with the public closer to the launch date. Parents with children will also be pleased Th e built-up for a typical intermediate “Th ese terraced homes come with a built- “There are no rooms downstairs. The to know that there are a few reputable in- unit is 5,262 sq ft while the corner units start up of a detached home. Th ey also have a master bedroom is located on the top fl oor. ternational schools within a few kilometres from 6,056 sq ft. courtyard and a lift,” Lau said. In front of the master bedroom there is an- from Amaris such as Dalat International According to Lau, the development, which other room, whereby you can convert the School, Tenby International School and Up- KENNY YAP / TheEdgeProperty.com is scheduled to be completed by 4Q2017, is sit- whole area into a study perhaps, and you lands School as well as established public ting on a 2.15-acre freehold site and has a total will have the whole upstairs to yourself,” Lau schools such as the Penang Chinese Girls gross development value of RM122 million. said, adding that there are three bedrooms High School and Phor Tay High School. “We will be targeting repeat buyers from on the fl oor just below the top fl oor. On the current slowdown in the prop- our past projects and those with extended “Meanwhile, when you enter the house, erty market, Lau believes buyers are very families who wish to upgrade their residen- you will fi rst enter into the kitchen on the left. discerning and are looking for properties tial units. We have many repeat buyers here Further to your left, you have the maid’s room with strong differentiation and a good whereby they start off by buying terraced and the laundry area. Th ere is a side door location. homes, then they upgrade to the semi-dees for the maid to go out to hang the laundry. “Th ey will take their time to survey the and subsequently the bungalows. Some of Th ere is a concrete wall at the porch where market for good quality products in this cur- them have even proceeded to buy the stra- residents can plant creepers to beautify and rent market. Amaris will be able to attract ta-titled properties here after that. We have make the area look green. Th en, at the back genuine buyers despite the current market Lau: Some quite a pool of followers,” Lau said. of the kitchen is where the living room and condition as it is backed by the tenets of the of the units Lau added that this project is also suit- dining area are,” she noted. right product, is located at a prime location, are literally able for multi-generational living since it Lau further explained that Amaris is well and has the promise of a brand with a prov- by the sea. comes with a lift. connected with plenty of amenities nearby. en track record,” Lau concluded. FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY TEP 5 NEWS I&P to launch RM381 mil worth of homes before year end

PICTURES BY I&P GROUP BY RACHEL CHEW products within our existing town- ships such as and SHAH ALAM: I&P Group Sdn Bhd ,” Jamaludin told chief executive offi cer Datuk Ja- Th eEdgeProperty.com. maludin Osman aims to launch One of the projects targeted for two more projects worth RM381 launch soon comprises terraced million in gross development val- houses in Alam Impian, Shah Alam. ue (GDV) before the end of this “We are aiming to launch a new year. housing type in the Alam Impian “Given current uncertain mar- township. Th e 127 double-storey ket conditions, we are studying terraced houses have a total GDV the market closely and carefully,” of RM89 million. It has smaller he said, adding that at least one built-up sizes of 22ft by 75ft, so launch will be taking place before the selling price will be slightly 02 2016 ends. cheaper at between RM600,000 “We are planning to have more and RM700,000. Previously, we of- 01. 127 double-storey terraced houses will be launched in launches next year, especially new fered bigger built-ups with selling Alam Impian before 2016. prices at between RM800,000 and 01 02. Artist’s impression of the sky lounge of 10 Kinrara. RM900,000,” he said. Jamaludin: I&P Group is also looking to “As a developer, we see that de- of land in the Klang Valley and Jamaludin reckoned I&P Group We are launch a new serviced apartment mand [of housing] has not gone Johor Bahru. We also have many has enough landbank that could planning to project called 10 Kinrara at its Ban- down even when the market is existing townships that have yet to keep the group busy for a “very long build more dar Kinrara township in Puchong. down and financing is difficult. be fully developed such as Alam time”. However, it remains open to smaller It is a 2-tower mid-range project While we [developer] cannot do Impian that we launched 10 years any potential land acquisition op- houses featuring 380 units and 39 strata anything on end-fi nancing, we can ago. It is a 1,235-acre township in portunities. for small shop offi ces. Th e project has a GDV provide products that the masses Shah Alam and thus far only 40% “We will not push away a good families. of RM292 million. can aff ord and fulfi l their needs. of it has been developed. We can deal if it comes to our doorstep, but “We are now open for registra- “Landed homes have always aff ord to build more landed homes we are not actively looking for it. tion and once we get the approval, been the hot property type but in mature townships in the future. We will remain focused on Klang we will open one tower for sale most buyers cannot aff ord these. Th is is our niche at this point in Valley and Johor Bahru,” he said. fi rst. We hope we will get the ap- So we are planning to build smaller time,” he said. I&P Group recently bought proval soon so we can launch this houses that are just right for small Besides Bandar Kinrara and Alam 327.55ha of land in Semenyih for before the end of this year,” said families that need no luxury living Impian, I&P Group is also the devel- RM428.8 million from Sime Dar- Jamaludin. space to fulfi l their needs and bring oper of Temasya Glenmarie, Alam by Bhd. On the current market down the price,” he said. Damai, Bandar Baru Seri Petal- “Yes, the initial plan for this piece slowdown, he believes off er- Moving forward, landed prop- ing, Alam Sari, Bukit Damansara of land is to develop another town- ing products that the market erties will still be the focus of I&P, in Klang Valley, as well as Taman ship. However, nothing is concrete wants is the key to a develop- said Jamaludin. Perling, Taman Pelangi Indah and yet so I don’t want to share too much er’s sustainability. “We have more than 4,500 acres Taman Rinting in Johor Bahru. about the plan,” Jamaludin said. SAM FONG | TheEdgeProperty.com

The 5th LafargeHolcim Awards opens for entries

BY TAN AI LENG issues within contemporary building and Projects are evaluated according to the construction. region which they are to be built, and are PETALING JAYA: The 5th International Projects must have reached an advanced measured against fi ve target issues for sus- LafargeHolcim Awards competition for stage of design, have a high probability of tainable construction, namely progression projects and design concepts that focus execution, and may not have started con- (innovation and transferability), people on smart solutions for cities and the built struction before July 4, 2016. (ethical standards and social inclusion), environment is now open for entries from For the Next Generation category, the planet (resource and environmental perfor- architects, urban design planners and organiser is looking for “blue-sky” solutions mance), prosperity (economic viability and engineers. by students and young professionals aged compatibility) as well as place (contextual Organised by the LafargeHolcim Foun- below 30 years old. and aesthetic impact). dation for Sustainable Construction, the Participants are encouraged to submit Held every three years, the competition is Awards off ers US$2 million (RM8.35 mil- their visionary concepts and bold ideas, divided into fi ve geographic regions — each lion) in cash prizes. of sustainable construction and design irrespective of the probability of actual im- with its own jury of renowned specialists Projects and concepts from the fi elds throughout all stages of a project’s lifecycle. plementation. from science, business and society. of architecture, landscape architecture, “We proudly support the Awards, and LAFARGEHOLCIM AWARDS Th e juries are headed by Harry Gugger urban design, planning, technology, and look forward to receiving winning entries from Swiss Federal Institute of Technology civil and materials engineering are eligi- from Malaysia,” Legrand added. (EPFL Lausanne), Switzerland (for Europe); ble for entry. Online submissions close on In 2012, Malaysian architect Datuk Ken Ray Cole from Th e University of British Co- March 21, 2017. Yeang’s ecologically-designed retail and lumbia, Vancouver, Canada (for North Amer- Lafarge Malaysia Bhd president and CEO commercial building in Putrajaya won the ica); Angelo Bucci from Universidad de São Th ierry Legrand said the Awards is the most bronze award in the Asia-Pacific region, Paulo, Brazil (for Latin America); Nagwa signifi cant worldwide competition in sus- and was one of 15 fi nalists to compete for Legrand: Sherif from American University in Cairo, tainable design as it recognises innovative the Global Holcim Awards. The Awards Egypt (for Middle East, Africa); and Donald projects and future-oriented concepts on The LafargeHolcim Awards offers two recognises Bates from University of Melbourne, Aus- the regional and global levels. categories — the main category and the innovative tralia (for Asia Pacifi c). He noted that the competition seeks pro- Next Generation category. projects and Th e regional winners will be announced jects that go beyond balancing environmen- The first category is open to architects, future- at a series of fi ve consecutive Awards cere- tal performance, social responsibility and planners, engineers, students of related oriented monies in the second half of 2017. economic growth. disciplines, project owners, builders and concepts on Th e 15 projects that receive Gold, Silver “Projects should, in addition, exemplify construction firms that showcase sus- the regional or Bronze in the regional level will automat- architectural excellence, a high degree of tainable responses to technological, envi- and global ically qualify for the Global Awards, which transferability, and thereby extend notions ronmental, socio-economic and cultural levels. will be presented in mid-2018. TEP 6 FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY

sustainable township is one that emphasises a comfortable living environment that endures into the future. It is one that aims to fulfil the desires of the people for a place they can call home. Planning a sustainable township therefore Arequires an insight into the needs of the people or its future residents, and this takes a special developer – one who can commit its expertise and efforts into carving out a true mas- ter-planned development from barren lands. The importance of good master planning in townships are often overlooked and consequently aff ects the residents’ quality of life. A comprehensive master plan is essential to provide a long-range vision for the built environment of a community. It involves vital issues like laying out the streets, the intersections, the bike lanes and sidewalks; providing good accessibility to the area while allocating a hierarchy of community spaces and amenities such as landscaping as well as parks and recreational centres in suitable locations for easy reach by the residents. Amenities such as lifestyle and retail centres, schools and medical centres are also in- cluded in the master plan. Strong master planning is also about having the foresight to create fl ourishing townships from an undeveloped area. Such foresight involves the various processes of anticipating development needs, balancing competing community build- ing goals, and coordinating local and nation-scale interests on a sustainable basis thus building up and growing the area. Apart from providing adequate infrastructure to support the daily and commercial needs of the community, strong master planning also ensures the sustainability of the qual- ity of life of the township’s residents. The strategy of mixing commercial, recreational, educational, healthcare and public amenities in urban neighbourhoods has proven successful towards the sustainability of a township. A strategic location with superior road accessibility plays an important role in every successful, self sustaining township. The socio-economic development and subsequent economic growth of any community is strongly linked to its transport in- frastructure. Careful planning is involved in the design stages to choose the best layout for the township’s streets, walkways and road interchanges that enable easy entry and exit. The effi - cient and sustainable use of resources in a settlement can also be achieved by spatial and strong master planning. Enhancing quality of life through master-planning For the past 20 years, Gamuda Land, the property develop- ment arm of construction giant Gamuda Bhd has maintained its philosophy of practising comprehensive master-planning

Village Square at Valencia , Sungai Buloh.

Homes overlooking the golf course at Horizon Hills, Iskandar Puteri. FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY TEP 7

across all its developments. It has built a track record in delivering innovative developments and creating holistic, sustainable communities since 1995. This comes as a natural progression as Gamuda Bhd which emerged Builder of the Year at the Malaysian Construction Industry Excellence Awards 2016 had long emphasised on product differentiation and excellence, value-creation as well as sustainability which includes talent development — all attributes which are similarly refl ected in the way Gamuda Land works. Creating a master plan may only be the beginning of a township’s creation but for Gamuda Land, it is one of the most crucial aspects in the development process. This is because a good master plan requires the developer to draw up a plan that anticipates and accommodates potential development issues that may arise in the future phases of the township’s growth. Hence a logical phased growth plan needs to be outlined, in order to develop the site to its fullest potential. With a well-established reputation for strategic Above: Aerial view foresight, innovative design and value creation in of , developing a portfolio of projects (completed, under Shah Alam. construction and future projects) worth about RM73 billion, Gamuda Land has the resources and experience to develop large scale townships not only throughout Malaysia but globally. According to Gamuda Land Managing Director, Chow Chee Wah, “Smart development takes for- ward planning and a vision. Comprehensive master planning lays the foundation for any development to move forward in building a complete and sustainable community where the right mix of components are placed at the right places — residential, commer- Canals of Kota cial, retail, recreational and entertainment as well Kemuning. as schools and other public amenities. In building sustainable developments with emphasis on stra- tegic locations, fortifi ed with comprehensive mas- Premier planning outcomes with the construction of the ter-planning and beautifully crafted environments, Kota Kemuning, Shah Alam (Kesas) by Gamuda in 1996 and the highway has since we are able to ensure that our properties continue Gamuda Land’s emphasis on holistic master-plan- become one of Klang Valley’s major highways. to grow in value time after time especially in terms ning has resulted in a number of award-winning Kota Kemuning is now considered to be stra- of investment growth.” projects including Kota Kemuning in Shah Alam, tegically located due to its highway accessibility. Initially focusing its interests in Klang Valley and Selangor. The 1,800 acre mature township used to It has since become a self-sustaining township its outskirts, Gamuda Land has successfully expanded be a palm oil estate when it was fi rst acquired by the which is supported by a network of highways and its investments into Singapore, Vietnam and Austral- developer in 1995. roads, commercial and business precincts with over ia, with a portfolio comprising over 13,000 residen- When fi rst unveiled in its early years, Kota Kemun- 1,000 stores, a wide variety of public amenities, tial units and a growing list of retail and commercial ing was considered to be in a place in the middle of community spaces and facilities that ensure that Ambang Botanic in property projects. nowhere. However, the area was greatly transformed CONTINUES NEXT PAGE , Klang. TEP 8 FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY

FROM PREVIOUS PAGE stayed true to Gamuda’s practice of incorporating all the lifestyle needs of its residents are taken care maximum greenscapes. It also won multiple awards. of. Commercial precincts are strategically placed The bungalows, semi-detached houses, linked hous- near diff erent residential enclaves to conveniently es, and shop offi ces are set within more than 100 serve the needs of the residents. acres of generous green lungs including parks, lakes The houses and amenities in the township are set and open spaces. within a well landscaped environment fi lled with lush The generous botanical parkland area, Botanic West, greenery. Walkways and open spaces are weaved into was carefully designed to create a distinct green iden- the neighbourhood’s residential clusters. The town- tity and its Central Lake and parks have become the ship’s central lake and parks have become meeting community’s main recreational hubs. Meanwhile, the points for residents and brought them out of their waterfront-parkland of Botanic East off ers resort-style homes to enjoy the great outdoors. Another central ambience with its thematic parks and gardens. point of the booming township is the Kota Permai Bandar Botanic had also achieved the remarkable Golf & Country Club that provides residents with a feat of winning The Edge Malaysia-PEPS Value Cre- full service club house. Gamuda Land also built Gamu- ation Excellence Award for three consecutive years da Walk, the fi rst neighbourhood lifestyle mall in the from 2013 to 2015. This achievement is attributed to a township to serve the needs of the residents. All these combination of factors including its strategic location Clubhouse at Botanic Resort Club in Bandar Botanic, Klang. make for a comfortable living environment which is South of Klang with direct access from KESAS High- are not found in normal township developments. way, its award winning landscaping and its detailed Innovative solutions have also been applied to master planning, which had previously won the de- deliver beautiful yet useful outdoor features. For veloper an award from the International Real Estate instance, Gamuda Land built canals that became Federation (Fiabci). All these attributes have attracted recreational features instead of the usual concrete the attention of homebuyers to Bandar Botanic thus drains. Their designs not only provide aesthetic raising demand and sustaining the capital growth of values but represent a unique blend of form and the properties in the township. function. The Kota Kemuning Wetland Park has successfully incorporated form and function by Horizon Hills, Iskandar Puteri creating a value-enhancing wetlands area that Down south in Johor, Horizon Hills, with a GDV of manages the storm water for fl ood mitigation and over RM7 billion, is another low-density integrated at the same time, plays host to a great diversity of master-planned residential township. Located in fl ora and fauna in and around it. Iskandar Puteri, it spans across 1,200 acres of land. Kota Kemuning had received the Best Proper- At Horizon Hills, Gamuda Land has maintained the ty Development title at The Edge Malaysia Prop- natural undulating terrain of the land and trans- erty Excellence Awards 2015 as well as The Edge formed the lowlands into a golf course of interna- Malaysia-PEPS Value Creation Excellence Award tional standards and a full facility club house. Only in 2012 and 2013. These awards are testament to 30% of the terrain was reshaped while the rest was what Gamuda Land stands for when it comes to retained in their natural form. The award-winning Kota Permai Golf Course. township development namely strategic location international championship 18-hole golf course was underpinned by comprehensive master-planning designed by Ross Watson. and beautifully crafted environment which accu- “Building houses that cling tenaciously to the mulatively translates into value creation. sides of a hill are is more diffi cult and more expensive than building on a fl at ground. Often, developers will Bandar Botanic, Klang take short cuts which damage the natural terrain. We Meanwhile, Gamuda Land’s Bandar Botanic in strive to keep the allure of the hillside through dra- Klang is based on a parkland-waterfront concept. It matic vistas and rugged landscaping. This preserves spans over 1,247 acres of freehold land with a a total its natural beauty while enhancing the project’s mar- gross development value (GDV) of RM5 billion. The ketability,” said Chow. low-density development which began in year 2001 Also included in the master plan design are securi-

Signature homes at Gamuda Gardens with striking façade. FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY TEP 9

Sunset at Horizon Hills, Iskandar Puteri. Yen So Park, Gamuda City, Hanoi. ty or crime prevention features such as in the form of planting the 2,000 existing mature trees on site. highways — Guthrie Corridor Expressway, LATAR cul-de-sacs and roads that ensure only one entry and Gamuda City also features two other integrated Expressway and North-South Expressway — the exit point to the residential areas. The placement of townships and two vibrant commercial centres. development comprises Gamuda Gardens, an 810- perimeter fencing and guardhouses are also detailed Moving forward, Gamuda Land stands fi rm in acre mixed-use development that ingeniously com- in the master plan. its belief to create value for residents and investors bines modern lifestyle with nature-rich living and Overseas, strong master planning and sustain- alike despite the current slowdown in the economy. Estates, an 89-acre boutique residential able development have also been applied in the It stands ready to raise the bar at every opportuni- development that off ers modern countryside living. creation of Gamuda City, Hanoi. The beautiful Yen ty. Its strategy of combining good master-planning Gamuda Gardens will be launched in the fi rst quar- So Park in Gamuda City, a world class recreational with well-crafted environment ensures the creation ter of 2017 whilst Kundang Estates will be offi cially park is one of the most beautiful developments in of sustainable value for its customers, in the form launched in November 2016. North Vietnam. Its inspiration is derived from the of enhanced quality of life and investment growth. Also in the works is twentyfi ve.7 in South Kemun- diverse historical elements of culturally-rich Hanoi. This will continue to be Gamuda Land’s core ing, a modern lifestyle development with a vibrant Gamuda Land has used its experience and expertise strength as a developer of outstanding townships waterfront retail and commercial hub as well as res- in infrastructure construction to transform the old that provide long term value appreciation. idences with new-to-market designs. run-down park into a well-maintained, lush land- Gamuda Land’s strength in master-planning scape with recreational facilities, commercial and Upcoming townships will again be refl ected in each of these new de- residential zones, hotels and offi ce towers. The Gamuda Land will truly distinguish itself through the velopments bringing to fruition, the developer’s design dramatically transformed the surrounding upcoming launch of an over 900-acre development vision to inspire change in the way people live by environment by retaining the existing natural at- in North Kuala Lumpur with GDV of RM11 billion. providing conducive living environments that are tributes such as the fi ve lakes, lake sizes and trans- Perfectly located at the intersection of three major sustainable over time. TEP 10 FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY COVER STORY THEEDGEPROPERTY.COM ROUNDTABLE ON BUDGET 2017

PATRICK GOH | TheEdgeProperty.com

Check out the Roundtable video snippets at www.theedgeproperty.com

Will property prices come down?” terraced houses, the compliance cost comes This is not a new question espe- up to about RM20,000. On top of a hike on Property cially in a time when the property construction cost, this is 546% higher than market is soft. in 2008, he cited. Before one answers that question, panel- “In urban areas like the Klang Valley, the lists at Th eEdgeProperty.com’s Roundtable percentage of compliance cost in a property prices can come on Budget 2017 held on Oct 24 pointed out development can reach 20% to 25%,” said Tan. that industry stakeholders should fi rst ask Meanwhile, Soam said the government and fi nd out whether there is any possibil- has been made aware about the rising com- down if ... ity that property prices could go any lower. pliance cost. “We are trying to ask the federal Th e panellists that took time off to take part government to address this issue and for the in a lively discussion following the tabling of National Land Council and National Housing BY RACHEL CHEW, LUM KA KAY + Budget 2017 by Prime Minister Datuk Seri Council to standardise the cost in each state.” SHAWN NG Najib Razak on Oct 21 were: Real Estate and On the cost of labour, MBAM’s Foo said it Housing Developers’ Association Malaysia is “impossible” to keep the cost low because (Rehda) deputy president Datuk Soam Heng Malaysia’s construction industry needs foreign Choon, Rehda deputy secretary general Tan labour. We cannot deny that the construction Ching Meng, Rehda Selangor chairman Zu- industry needs foreign workers because our lkifl y Garib, Rehda Johor chairman Datuk youths do not want to do the job, he added. Steve Chong, Rehda Kedah/Perlis chairman He also said that the Goods and Services Datuk Rick Cheng and Master Builders As- Tax on building materials is another burden to (From left) Tan, Foo, Agreeing with Soam, Zulkifly said the sociation of Malaysia (MBAM) president Foo developers and contractors, and they have no Soam, Au, Zulkifl y, focus has long been on the developers and Chek Lee. Th e roundtable was moderated by choice but to transfer the cost to the end-buyers. Chong and Cheng the government when it comes to property Th eEdgeProperty.com managing director Th ere are other factors that add up to the to- in the roundtable prices. “It is possible to bring prices down and editor-in-chief Au Foong Yee. tal construction cost as well such as the lengthy discussion. if everybody plays his or her part,” he said. Overall, the panellists agreed that it is process for development approvals which could Overall, it does not seem likely that prop- possible to bring down property prices but take years while requirements imposed on de- erty prices will come down anytime soon but developers would not be able to do it on their velopers, including the requirement to build considering the current state of the market, own. All stakeholders — including the federal low-cost housing, also aff ects the prices of other some developers may be feeling the pinch and government and state governments — have property types. decide to reduce the prices of their properties. a role to play. “Th ere are already a lot of conditions be- Indeed, there could be good buying op- Th e industry players also stressed that ing imposed [on developers]. For developers, portunities for homebuyers shopping around property prices hinge on numerous costs, the average net sellable area of their projects during this time, said Rehda Johor’s Chong, the major ones being land, construction, is now about 15% to 20% lower than 15 years who believes some developers may lower compliance and labour. ago. At that time, we could build 12 to 13 units their property prices to ease their cash fl ow “If you look at the historical data that we of terraced houses per acre, but now the num- problems. have compiled in Kedah, the compliance ber is smaller, so our net sellable area has been “It’s important to remain positive and send cost has been increasing every year since reduced,” Soam said. positive vibes to the market. Housing property 2008, on existing items as well as fees im- He also stressed that developers are not mak- prices will not come down [for the time being] posed on new items. So it is impossible to ing “obscene profi ts” as they are often perceived. but there are many choices in the market. It is see property prices dropping in the near “If you look at some of the listed property now a buyer’s market and if you see any cheap future,” said Cheng. development companies, you can check their property, just grab it,” Chong added. He said the compliance cost took up only profi t margins and compare that with compa- Th e roundtable also discussed the measures 5% of construction cost in 2008 for a single nies in other industries. Are we really making announced by the government in Budget 2017 storey terraced house in Kedah. But this has obscene profi ts? I don’t think so,” Soam com- and the use of Industrialised Building System increased to 13% this year. For each of these mented. to bring down the cost of property. FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY TEP 11 THEEDGEPROPERTY.COM ROUNDTABLE ON BUDGET 2017 COVER STORY

BLOOMBERG

In Kuala Lumpur, the government is pumping money to build the infrastructure to develop the city into a world class city. If you want a city to grow, you should also grow talent and develop a strong middle class. Th e middle class in the urban area should be helped. Th is is why I think the stamp duty exemption for property purchases should be extended from RM300,000 to half a million ringgit. Nothing is “one size fi ts all”, there must be some exemption made for buyers in Greater KL and other big cities.

Cheng: For smaller cities such as Kedah and Perlis, RM300,000 is enough but it may not be enough for big cities like Kuala Lumpur, Johor and Penang. Maybe the government should consider having two tiers of zero stamp duty. For smaller cities, it remains applicable up to RM300,000, but for bigger cities, it can be raised to half a million. For smaller states, we don’t have aff ordability issues because our houses are aff ordable. With On Budget 2017 RM160,000, we can get a house. Certain PR1MA houses in Kedah sell better than normal houses What does it do for the property development sector? although they are priced higher. Soam: If you look at the average property price in Malaysia, it does not touch half a million ring- git. However, when we talk about property pric- es, most of the time we are referring to Klang Valley property prices and tend to forget about Rehda deputy president Datuk Soam Heng eff orts to help the lower-income group to own the smaller towns. Choon: I think most property developers in town their own homes. However, if the government Yes, property prices are not that high in these are saying that Budget 2017 does not benefi t them could consider lowering the percentage of af- smaller towns, but in the Klang Valley, they are. as it focuses on home ownership among the lower fordable housing in a project, say from 40% to I agree with the two-tier stamp duty suggestion income group. 20%, it will be good news to us. because it could help the people no matter which One of the main arguments today is that people Johor has many aff ordable housing projects state they are in. want to buy property, but they can’t get the margin with low occupancy rates. It is not because peo- We must also not build housing in locations that of fi nancing. One of the areas the [government] ple do not want to take them up but some are not are not favoured by the people. We shouldn’t create is looking at is how to leverage EPF (Employees located in areas convenient to them. supply in areas that have no demand. However, Provident Fund) savings to increase the quantum Some people work in town A but they get the in Malaysia, we are facing this problem. of the loan amount they can get. By using and lev- aff ordable houses in town B. We do not need that We only have the supply fi gures; no one cares eraging the deposit in the EPF, the quantum of the many aff ordable housing in areas where they are about demand. We do have the fi gures on how loan amount could increase, and this will help to not in demand. many houses the nation needs, but it does not increase home ownership. go into detail like how many houses and at what For PR1MA (Perumahan Rakyat 1Malaysia) Rehda Selangor chairman Zulkifl y Garib: Gen- pricing each area needs. projects below RM300,000, the government an- erally, it is a budget with good initiatives. How- We should be clear about what the demand is nounced the step-up end-fi nancing scheme to ever, the government should study how many now and in the future. If every developer jumps help increase home ownership. Rehda hopes that aff ordable houses [in Selangor] have not been in to build houses at RM500,000, what will hap- this end-fi nancing could be extended to private taken up before launching more. pen in the future? In fi ve years, it will become a projects. In a nutshell, Budget 2017 is mainly for To carry out aff ordable housing schemes eff ec- problem when we fi nd that we are in short supply the low-income group to own houses. We must not tively, number one, we should plan supply well. of other housing types. build housing Number two, you must have a guideline on how We also agree to involve more GLCs (govern- Rehda Kedah/Perlis chairman Datuk Rick to carry out the scheme; and number three, are ment-linked companies) in building aff ordable Cheng: For the smaller states, property prices are in locations these buyers qualifi ed? I believe we are not short housing as GLCs have the landbank and lever- lower than Tier 1 cities. With a RM300,000 budget that are not of buyers for aff ordable housing, but if those who age, so they have more fl exibility compared with you will have many choices, such as single storey actually buy are not the qualifi ed ones, the schemes private sector developers. Again, the location of semi-detached houses. favoured by do not really help those who are in need. these aff ordable housing projects should be where It was announced that property purchases of the people. Th e intention of aff ordable housing schemes the demand is. We do not need more aff ordable RM300,000 and below will get zero stamp duty. Th is is good, but how to implement them is the key if housing with low occupancy rates, affordable is good news to a lot of our buyers. Th ey probably We shouldn’t we want to benefi t the people. housing that ends up being put up for auction could save about RM5,000 in stamp duty. However, create supply and sold to anyone. this policy will only take eff ect on Jan 1, 2017. So I Rehda deputy secretary general Tan Ching am worried that purchasers will wait out these two in areas Meng: Kuala Lumpur is a unique place — it is a Zulkifl y: Yes, we should go into the details. In months and only make their purchases next year. I that have no high migration area and land is always in short Kuala Lumpur and Selangor, RM200,000 is think it should take immediate eff ect so that we can demand. supply. Sourcing land is very diffi cult for PR1MA considered affordable, but in smaller towns, push sales within these two months. so whatever incentives given to building PR1MA RM200,000 could buy you a nice link house and I also foresee some agents telling their buyers to — Soam homes should be given to private developers as it may not be considered aff ordable to the locals. buy now and stamp it in January. I think the move well. will suffi ciently stimulate the property market in Th is is also because the middle class in the city Chong: I agree with the government’s move to smaller towns or Tier 2 cities. are very stressed. Th ey are already trending down get more GLCs to contribute to the aff ordable to the B40 group (bottom 40% of households with housing development but I think the government Rehda Johor chairman Datuk Steve Chong: monthly income of RM3,900 and below) and we should open up its landbank for the private sector Generally, we are supportive of the government’s are talking about helping the B40 to get a house. to build aff ordable housing as well. TEP 12 FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY COVER STORY THEEDGEPROPERTY.COM ROUNDTABLE ON BUDGET 2017

ABDUL GHANI AHMAD | TheEdgeProperty.com

Master Builders Association Malaysia presi- dent Foo Chek Lee: Prices of building materials must be stable because it will directly impact the construction cost and eventually aff ect property prices. Of course, labour cost is another key factor that aff ects property prices. On building materials, cement and steel prices are reasonably stable now compared with four to fi ve years ago. Another reason for the relatively stable building materials cost is that many big civil engineering jobs do not compete to use cer- tain materials and building methods as many of them are shifting to the Industrialised Building System (IBS). Th e government should encourage the use of the modular type of IBS. Th is can involve SMEs (small and medium enterprises) producing the components to speed up construction. We urge the government to review the tax imposed on IBS equipment. We do not see many incentives in “The Budget 2017 for contractors and developers that government use IBS. We should encourage the industry more to move towards the use of IBS. should encourage Soam: We have discussed in Rehda internally On IBS as the way a proposal that by 2018, industry players in the the use of the Klang Valley, Penang and Johor will be required modular type to use IBS in at least 50% of their development projects. to reduce cost of IBS” This will put everyone on a more level play- — Foo ing field and raise demand for IBS building components. Higher demand will encourage Only if there are economies of scale more suppliers and, eventually, prices for IBS components will come down due to the econ- omies of scale. I agree with Mr Foo that everyone should go for the modular type of IBS because it has less IBS and these are mainly high-rises. hear a hollow sound we think it is of bad quality. wastage. Modular is just like Lego bricks, where By using IBS, we can save cost through faster Local authorities need to change their mind- building blocks will be produced according to delivery, less labour and less wastage. We also sets too. Th ey should be fl exible with the materi- the requirement. For example, you don’t have to need to change the mindset of buyers. In Ma- als used in construction as long as they serve the cut tiles at the corners anymore because accu- laysia, buyers are still not confi dent with houses same purpose. rate-sized tiles can be produced under the IBS built using IBS. For instance, in Australia, it is All stakeholders in the industry and buyers modular system. Right now, about 25% to 30% of common to build homes using particle boards but must change their mindsets towards IBS as well, the projects in the country are being built using in Malaysia, we will knock on the wall and if we only then can IBS work in our country.

ABDUL GHANI AHMAD | TheEdgeProperty.com Foo: One major issue is labour. Malaysia’s jobless Th e government should forego the GST on con- rate is around 3.4%. We have a population of 37.1 struction materials. Although contractors can million. So slightly more than one million people claim back the tax, they have to wait and this is a are jobless. If we do not count the elderly, children burden to them in terms of cash fl ow. and ladies, there are not even a million people left and if all of them work for the industry, it still Soam: When developers build residential prop- won’t be enough. erties, the construction materials used are GST So, we cannot deny that the construction indus- exempted, so that means we cannot claim back try needs foreign workers. To bring in legal workers the input tax of the materials. As a result, we have will easily take six months. Th eir contracts only to absorb the cost. For properties that have a fi xed last about 1½ to 2 years, so almost 25% to 30% of price, such as low- to medium-cost houses, it is them will be gone after two years. going to be worse as the amount is going to be sub- Th e situation has slightly improved in recent sidised by buyers of other categories of properties. times but it is still too time consuming to bring in foreign workers while the cost of hiring them is Foo: Our tax structure is the highest among South- high, especially if they are skilled workers. east Asian countries, so I think the government Th e government has several training centres should reduce the GST on construction materi- to train workers for the construction sector. Most als and heavy machinery so that we can bring in of them have the theoretical knowledge but they better machinery which off er greater productivity lack the practical knowledge. Most of them do not and effi ciency. even join the industry after they graduate because they fi nd jobs in the construction sector very dif- Tan: Implementing a few big projects all at one fi cult and tiring. time is not good for controlling prices of building materials. For example, prices went up signifi - Soam: Th e shortage of skilled workers is the big- cantly when the Mass Rapid Transit 1 (MRT 1) gest challenge we are facing in the construction construction work started. Th e MRT 2 construc- On the cost of industry. All this while, people have been asking tion work will be starting soon, so we must watch us why we do not use local people but the fact is, prices carefully, especially so in Kuala Lumpur no locals want to do the job. Th ey say this is a “3D” where the industry is very sensitive to cost. job — Dangerous, Dirty and Diffi cult. Local authorities could help keep building costs construction Skilled workers today make much more than low by being more relaxed about construction those working in offi ces but our youths do not work hours and by providing more dump sites. want to do such work. Of course we appreciate the authorities wanting Labour remains a major issue to keep the city clean and neat but when they get Foo: Another cost issue is related to the imple- carried away with their mission, it becomes a great mentation of the GST (Goods and Services Tax). burden to contractors. FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY TEP 13 THEEDGEPROPERTY.COM ROUNDTABLE ON BUDGET 2017 COVER STORY

ABDUL GHANI AHMAD | TheEdgeProperty.com On bringing down property prices

‘Every stakeholder has to play his or her part, not just developers’

Chong: We really need help from the govern- leads to pricing. Normally, half of the selling price gin. If you fail to comply with this requirement, the ment to reduce cost and prices. Th e government of a property goes to construction cost, and we SC will not approve the application as they think should be clear about the purpose of doing cer- haven’t yet factored in the costly compliance cost. this company is not viable. However, it takes at tain things, like, asking us to build more low-cost least fi ve years for us to develop one acre of land, houses in Johor Bahru, but these houses were not Chong: Everybody thinks that developers are and that is considered very fast already, so it is welcomed by the locals. Hence, the government making a lot of money, but they don’t know that very diffi cult to get a 15% margin in a short period. should review the measure and reduce the num- some of us are not doing well too. Developers ber of units to be built. are the only ones who have to subsidise the de- Cheng: Th ere are so many costs involved in prop- velopment of low-cost or aff ordable homes. If all erty development. For example, we need to fork Soam: We hope state governments would be sectors in Malaysia and not just the developers out RM100,000 to RM200,000 to build electric more caring and try to solve the problem of peo- hold hands and contribute towards a fund for the sub-stations on our land for Tenaga Nasional Bhd ple who do not want to live in low-cost units es- development of aff ordable housing, I think prices in order to get electricity supply for our project. pecially the small-sized ones. In Negeri Sembilan, will come down. Actually, when we fund such infrastructure the state government asked developers to build cost, it is subsidised by the purchaser. Th at is why aff ordable units with built-ups of 800 sq ft as they Tan: In many cases, the buyers actually make house prices are increasing. realised that the small 650 sq ft units were not more money than the developer. We will be happy Over the last 20 years, we have built 100,000 welcomed by the public. So it makes more sense if we can get 10% of the margin but some buyers units of low-cost houses in Kedah, but with the to both the government and the buyers to have can easily fl ip and get a 20% gain. cost getting higher, we have to increase the price bigger units. of other higher-end housing, but then we get Soam: Ultimately, as a developer, we are here It’s possible blamed by the government for raising house Tan: If the government manages to help the lower to make money for ourselves and pay our taxes, to bring prices. In addition, the price for these low-cost income group get rid of poverty and live in bet- so that the government can take our taxes to do prices down houses has been fi xed at RM42,000 to RM45,000 ter houses, these people will be more optimistic social housing. However, if you look at some of from 15 years ago and it has not been adjusted about their future in the long run. the listed property development companies, you if everybody since then. can check their profi t margins and compare that plays their Soam: We are also asking the government not to with companies in other industries. Are we really Soam: Construction cost was only RM50 to RM60 impose anymore new development conditions on making obscene profi ts? I don’t think so, we are part. psf 15 years ago, but today it has gone up 2½ to 3 developers given the current challenging environ- not making the kind of profi ts that the banks are — Zulkifl y times to RM150 psf, but we still see prices of low- ment. Th ere are already a lot of conditions being making. So the question is, why only single out cost homes being maintained at the RM42,000 imposed. For developers, the average net sellable developers to do all these social work? Th e banks, level. Land price has also increased 3 to 4 times area of their projects is now about 15% to 20% lower for instance, should be responsible as well. in the last 15 years. than 15 years ago. At that time, we could build 12 to 13 units of terraced houses per acre, but now the Zulkifly: The government’s intention to bring Chong: I think the authorities should understand number is smaller, so our net sellable area has been property prices down is good, but the focus has all these issues and try to bring the cost down. reduced. Land input cost has increased. been on the developers only instead of all the Look at all stakeholders instead of just focusing Furthermore, compliance cost has risen as stakeholders. If we really want to bring house on a certain segment, I think this is the most im- well, which adds to the cost of doing business. prices down, every stakeholder has to play his or portant thing now. Compliance cost includes contribution to the in- her part, not just developers. frastructure construction fund, road works fund Soam: All stakeholders, from the government to and other tax contribution. In my opinion, the Cheng: If you look at the historical data that we the private sector, should gather to discuss how most important thing is to keep the cost of doing have, compliance cost has been increasing every to reduce cost. However, we also know that the business low, given such challenging times. year, on existing items as well as fees imposed country is facing the challenge of dropping oil on new items. So it is impossible to see property prices, so it is probably not the right time for us Cheng: In Kedah, to build a single storey terraced prices dropping in the near future. to ask for this. house, the percentage of compliance cost used In a nutshell, we won’t be able to bring property Th e federal government should also be aware to account for only 5% of construction cost in prices down because of compliance cost, labour that some B40 people are not able to aff ord any 2008. But this has increased to 13% this year. For cost and many other reasons, including the effi - property. What this group of people really need these terraced houses, the compliance cost per ciency of government departments. For instance, is to rent houses instead. unit is about RM20,000 today. On top of a hike if you want to obtain approvals for a property de- in construction cost, this is about 546% higher velopment, it could take two to three years, and Cheng: Th e stamp duty for buying property worth than in 2008. all this waiting time is cost for us. more than RM1 million will increase to 4% from 3% effective Jan 1, 2018. This will push up the Tan: In urban areas in the Klang Valley, the per- Tan: Th e gestation period [to develop a project] cost of doing business also. In 2018, if we buy a centage of compliance cost in a property devel- is very long. From the time the developer sources If you look at commercial property worth RM1 million, it will opment can reach 20% to 25%. for the land until project completion, it will take the historical be subject to 6% GST and 4% stamp duty charge. around eight years, and we just make a 10% profi t Let’s say we’re buying a commercial property of Soam: Actually, the government knows about the margin. Don’t forget that we are subject to risks data that over RM1 million, we have to pay 10% in taxes. surge in compliance cost. We are trying to ask the and infl ation as well. we have, Th e cost of doing business has increased. federal government to address this issue and for the National Land Council and National Hous- Zulkifl y: Actually, it is possible to bring prices compliance Tan: It has been reported that not enough has ing Council to standardise the cost in each state. down if everybody plays his or her part. cost has been been done to curb speculation. There’s no speculation in the market now. Speculators are Zulkifl y: Everyone is saying that house prices are Soam: According to the Securities Commission increasing all dead. The market is trending down. Who high, but pricing comes from the cost, and the Malaysia (SC), in order for a property development every year dares to speculate now? I think that the stamp fi rst thing you need to understand, especially the company to be publicly listed, one of the condi- — Cheng duty shouldn’t be raised. authorities, is about the cost structure and how it tions is the company must have a 15% profi t mar- CONTINUES NEXT PAGE TEP 14 FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY COVER STORY THEEDGEPROPERTY.COM ROUNDTABLE ON BUDGET 2017

BLOOMBERG

FROM PREVIOUS PAGE Tan: Right now we have many properties unsold in certain sectors. We should welcome foreigners [to buy them]. We need them and their money to strengthen our currency. Many of them bring in their money and park it here, just like how there are Malaysians who park their money in Australia and elsewhere. Th is is idle money. So we need that sort of exchange to lift up our ringgit.

Soam: Foreign ownership in Malaysia is very low. No matter how you look at it, it’s still low. Even with the Chinese buyers in Johor, their number is still very small despite there being talks about “buy one, free one” to lure them. Compared with the overall number of proper- ty transactions in Malaysia, it [sales to foreign buyers] is still very low.

Tan: Th ere are a lot more challenges [for the de- velopment industry] in Selangor now. It is also not On ways to lift good for the job market. For instance, there’s no need to set a requirement for 30% of SoHo (Small- offi ce Home-offi ce) in a property development. A SoHo is already a free market product but why the market introduce the 30% requirement? ‘No more goose that lays the golden egg’ Soam: To put things into perspective, we’re dif- ferent from Hong Kong and Singapore. In Hong Kong, the construction cost is only 20% to 30% of house prices. Th e land cost is the big component.

Tan: In a weak global environment, we do not want porters, everybody’s aff ected. Even restaurants. penses. They’re reinventing it this way. So the to kill the goose that lays the golden egg. Can you Construction is closely related to F&B. details are going to be discussed by the Finance imagine if we [the property development sector] Ministry. were to fall apart, some 140 industries related to Tan: Some of the Budget 2017 measures are not One funny thing about the industry is that it’s the sector will be aff ected? to buff up the government’s coff ers. We know that always talking about consumer sentiments and “In a weak their coff ers are stretched but then we are not say- all that. Hopefully with this, the Finance Ministry global Soam: Th at’s why I keep saying that 140 industries ing that they should permanently relax some of the and the banks can spur consumer confi dence. In- environment, are aff ected [by the economic slowdown]. measures in EPF. And we’re not saying [that they stead of selling our properties three times over to should do this] permanently. get the people to actually sign on the dotted line we do not Tan: What we’re experiencing isn’t close to other and then get their loans rejected, hopefully now want to kill countries which are having negative interest rates Soam: What the government is trying to do now we can aff ord to sell our units two times over as like certain countries in Europe and Japan. But we is to reinvent the money in EPF Account 2 but more people can get loans. the goose that must not tighten and kill the goose. In fact, we should this money will not be spent. Let’s say you have lays the golden help and maintain it during this period. this amount of money there, this money will be Tan: Th is will spur jobs. We already have retrench- used to leverage and to increase the quantum ments in the oil and gas, banking and many other egg.” Soam: No more golden goose! It’s more of a sur- of loan you can get. They’re using the money industries. So, if we don’t stimulate the property — Tan vivor duck now. But it’s really aff ecting everybody for leverage but you cannot take it out for Hajj [market], you’ll have more joblessness. And more across the board. Contractors, suppliers, trans- pilgrimage, medical and education or other ex- hopelessness and less buyers.

BLOOMBERG Soam: Th e government is going to build 10,000 houses to be rented to youths in Kuala Lumpur — these are transit homes for those working in the city. After fi ve years, they’ll have to move out whether they like it or not. And then an- other group of people will move in. Because if you’re a fresh graduate and only earning RM2,500, you can only aff ord to rent. But again, enforcement is very important. Th e Federal Territories Minister had also mentioned that instead of 1-bedroom apartments, they’re going to come up with better unit types and the rental will be RM300 to RM500 and these will be rented to young families. And similarly, fi ve years later, you need to move out. Th is model could possibly be viable for private develop- ers as well. Instead of just leaving your unsold houses there, why not rent them out and get some revenue to pay for your maintenance cost? Don’t forget that, under the new Strata Titles Act, any unsold unit will still be charged maintenance fees, even for provisional blocks. So, rather than leave the unit empty why not rent it as a transit home? Th e government is undertaking the transit homes under On government building homes the Youth and Sports Ministry and Federal Territories Min- istry. Under the National Blue Ocean Strategy, the Ministry is also building a new township called the Youth Township in urban areas for rent at below somewhere in Tanjung Malim. Th ey’re trying to look at pub- lic transportation and all that. Good idea, but be reminded that enforcement is key. All market rate to eligible youths the initiatives are good. Even now under the CIDB Act 520, contractors must have centralised labour quarters to be rent- ed out. You can build centralised quarters for the workers ‘Enforcement is key’ so that they can take public transport and commute to work every day. We uplift their living standards instead of them living in shabby places as we see now. FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY TEP 15 THEEDGEPROPERTY.COM ROUNDTABLE ON BUDGET 2017 COVER STORY

BLOOMBERG Soam: I think it will be quiet for the rest of this year and next year. Because as I said, there’s nothing much in this Budget 2017 for private developers. But overall the government’s initiative to promote housing for the B40 category is a noble idea.

Foo: Coming up with a policy is one thing, imple- mentation is another thing. Policy and implemen- tation must be aligned.

Chong: Housing property prices will not come down. So, if you see any cheap property, just grab it.

Tan: It’s a good time for first-timers to shop around. It’s a good time to buy homes. It’s going to be quiet and challenging this year and next. Confi dence must be restored and people must not always be worried about being laid off . And the housing industry must be stabilised to support the economy — stabilised in terms of not letting non-performing loans rise and big projects go “If people fi nd unrealised. developers Soam: It’s a buyer’s market. And you see, even who are though the housing sector isn’t doing so well, it’s desperate to diff erent for the construction sector because they have infrastructure projects to attend to. People ease their in certain sectors still have the power to purchase On the property sector’s cash fl ow properties. It’s not all doom and gloom. Of course each sector has its own challenges. lowering their Chong: If we want to bring housing prices down, outlook — Is the worst over? all of us need to hold hands together. It’s going to property be challenging. However, if people fi nd developers ‘Prices will not come down but ...’ prices, please who are desperate to ease their cash fl ow lowering grab it.” their property prices, please grab it. — Chong Soam: Th e leverage on EPF Account 2 and step- up financing [to reduce the loan rejection rate] Cheng: Is the worst over? For Tier 2 states like are owner-occupied, there is little speculation and have been discussed in the industry from 10 years Kedah and Perlis, I would say the worst is over. Next we’re mostly an agriculture-based economy. Hope- ago. Th e model [that was discussed back then] was year could be slightly better than this year due to fully housing transactions pick up slightly next year. slightly diff erent. We don’t want a systemic failure the incentives given in Budget 2017. We’re not ma- Price-wise, I don’t expect prices to increase; if we in the banking industry as well. Our household debt jorly aff ected by all the negative sentiment issues can maintain the current prices, we will be happy. is 89% so we have to be very careful and patient. and political issues. Also, a majority of real estate Th e worse is over so far for Tier 2 states.

BLOOMBERG

Soam: Ease fi nancing for the lower income sector Speed up the application process when we seek to spur sentiment and maintain the level of input approvals to develop a piece of land. Lastly, this cost — state governments should realise that cost is on fi nancing — whether it is a private bank or is a subset to selling price. It is important that more government loan, speed up the application and government land be used for aff ordable housing approval process. For smaller states, govern- programmes. We hope this can be done fast. We ment loans are important fi nancing sources for also hope that what’s given to PR1MA homebuyers homebuyers. can be extended to others as well. Chong: Reduce the compliance cost and subsidy Foo: For us contractors, we hope the government cost. I also hope that fi nancing for homebuyers can reduce the cost for IBS and cut down the GST can be eased. for building materials and heavy machinery to ease cash fl ow. Zulkifl y: I agree with everyone — that there be easier fi nancing, especially end-fi nancing. I also Tan: We have quite a large number of foreigners hope for a lower compliance cost. living here. We shouldn’t put a cap for foreigners to buy properties at RM1 million and above be- Tan: In Kuala Lumpur, we have a very fast-approv- cause there’s ample supply. So I would say that ing authority and developers are very active as the the government should lower the cap amount to government is encouraging high-density projects Wish list for the encourage foreigners to buy and reduce the red in the city. Th is will act as a stimulus to the mar- tape. We’re being edged out due to land scarcity ket. Do not disturb the local market but encourage in Kuala Lumpur city, so we also need incentives foreign buyers. We should lower the cap amount such as those given to mega projects such as Ban- to RM500,000 for foreign buyers. housing sector dar Malaysia and the Tun Razak Exchange. If pos- sible, the government should give those incentives Cheng: Maybe in Kedah and Perlis, this can be ‘Compliance cost should be reduced’ to developers in KL. done due to lower property prices. Cheng: Compliance cost should be reduced. Soam: I totally agree with Datuk Rick Cheng. In Don’t tax us so much. We also need more effi - Perlis and Kedah, you can hardly get a RM1 mil- cient processing of applications for development. lion property. TEP 16 FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY FEATURE Property sales dipped further in fi rst half of 2016

BY TAN AI LENG 7.3% and 4% y-o-y, respectively. Meanwhile, development land took up arket performance re- 6% with 10,249 deals worth RM8.56 billion, Residential properties, agricultural land and Buyers looking for aff ordable properties mained sluggish in the first down 5.34% in terms of volume and 28.8% commercial properties were the most traded According to Napic’s data, 66% of the total half of this year as proper- in value from a year ago. segments in the state with transacted cas- transacted residential properties in the ty transaction numbers in Th e third most transacted property type es of 13,693, 4,242 and 1,583, respectively. country were priced below RM300,000. the country continued their was commercial properties. At 7%, it saw Perak, ranked third in terms of transac- Transactions of residential properties be- downward trend. 11,660 properties sold in 1H2016 at a total tion volume, saw 19,782 properties worth tween RM300,001 and RM1 million stood MAccording to the National Property Informa- value of RM11.32 billion. However, its trans- RM3.9 billion sold in 1H2016. Residential at 30%, while houses with price tags of tion Centre’s (Napic) data for 1H2016, a total action volume and value had dipped signif- properties and agricultural land were the over RM1 million and above hit just 4%. of 163,528 properties were transacted averag- icantly by 34.5% and 21.85%, respectively, most transacted segments in Perak with On commercial properties, 36% of ing 27,255 properties a month, a decrease of from the same period a year ago. 11,965 and 5,944 deals closed, respectively. transactions were for properties be- 12.3% compared to the same period last year. However, the top three ranking states saw low RM300,000. Most transactions were In terms of transacted value, the total Selangor, Johor and Perak decreasing sales. Transactions in Selangor, for properties with price tags between dropped to RM64.59 billion in 1H2016 from ranked top three Johor and Perak dipped 16.3%, 15% and 17% RM500,001 and RM1 million. Properties RM76.61 billion in 1H2015. Of the various states, Selangor, Johor and y-o-y in 1H2016. with selling prices over RM1 million stood Among all the segments, residential Perak held the highest transaction volume On the other hand, Kedah and Kelantan at 17%. properties remained the main driver, consti- in 1H2016 — remaining unchanged from have seen a signifi cant increase in trans- For industrial properties, 44% of the prop- tuting 62% of total transactions. In 1H2016, 1H2015 — while Putrajaya, Labuan and Per- action volume. erties sold were below RM500,000 while 35% a total of 102,096 residential properties lis recorded the lowest transactions in the Transacted properties in Kelantan to- were closed at RM1 million and above. worth RM32.7 billion were sold. However, same period among the 16 areas shortlisted talled 6,447 cases, an increase of 38% y-o-y. Th e data also showed that 84% of the compared with 1H2015, the transacted vol- by Napic. Selangor saw 32,007 properties Agricultural land and residential properties agricultural land were transacted below ume and value for the residential segment worth RM18.2 billion sold in 1H2016, with were the most transacted segments in Kelan- RM200,000 and most deals (46%) were had dipped 14.5% and 10%, respectively. the highest number of transactions coming tan with 2,871 and 2,656 deals respectively, sealed at below RM50,000. Interestingly, agricultural land emerged the from residential properties at 24,839, com- in 1H2016. Under development land, the perfor- second biggest contributor to total transaction mercial properties at 2,719 and agricultural Kedah’s total transacted properties had mance was similar to the agricultural land volume in 1H2016 at 23%. Th ere were 36,723 land at 2,059. surged 9.8% to 16,118 cases, with the high- segment, where 62% of the deals were below land deals worth RM6.33 billion sealed dur- Johor was ranked the second highest state est number of transactions coming from the RM200,000, while 30% of land plots transacted ing the period. Compared with 1H2015, the with 20,680 properties sold, which carried residential segment at 11,965 and agricul- were below RM50,000. However, 12% of the transaction volume and value had increased a total value of RM10.87 billion in 1H2016. tural land at 5,944. transactions were priced above RM1 million.

SOURCE: NAPIC | GRAPHIC: TheEdgeProperty.com FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY TEP 17 DEALMAKERS

states of Malaysia as well as China in 2017. “We’re currently in , A holistic approach to work Overseas Union Garden (OUG), Setia Alam and Johor Bahru. We’re looking to expand to Penang and China as we have quite a num- PICTURES BY KENNY YAP / TheEdgeProperty.com ber of Chinese customers,” he says. BY LUM KA KAY On the pull factors for Chinese investors Eric Lim (middle) to Malaysia, Eric says the Malaysian prop- ow often do you hear of a real receiving the erty market is one of the most liberal across estate agency that provides an Top Real Estate Southeast Asia. in-house gym in order to pro- Firm award from “If you go to Singapore, you have to pay a mote work-life balance among the Minister of higher price for stamp duty and there are also its staff? Finance II Datuk more restrictions. Same goes for Australia. Located in Petaling Jaya, the Johari Abdul Ghani “While in Indonesia and the Philippines, Hheadquarters of Hartamas Real Estate Sdn (left) and current you cannot buy freehold properties. But in Bhd not only has a gym studio but also ka- president of Malaysia, foreign investors can buy freehold raoke facilities for its employees. Malaysian Institute as well as leasehold properties. “It is not all about work here as we be- of Estate Agents “We’ve attracted quite a number of Chi- lieve a holistic approach produces the best Erick Kho (right) at nese investors with deep pockets and very results. As we bond, we can motivate each the National Real low margin of fi nancing,” he adds. other and work towards the common goal,” Estate Award 2016 On the other hand, Hartamas Real Estate says Hartamas Real Estate group managing gala dinner that has also been aggressive in selling overseas director Eric Lim. was held recently. properties to Malaysians. “We [started] push- “Our work culture revolves around pro- ing our foreign market sales when we began ducing our best efforts and endeavours. its director of marketing and sales Kevin Lim seeing the local market slowdown here,” Th is is easy when we are passionate about says: “One very clear characteristic that de- Eric off ers, adding that properties in Lon- real estate. fi nes us is professionalism.” don and Australia remain popular among “We have a strong and dynamic team that “Once a buyer sees our name they can be Malaysian investors. does not settle for status quo. While we look assured and they can aff ord to do less due According to Kevin, education plays a to creating a competitive work environment, diligence because they know they can trust large role in property sales in London and it is also grounded in a familial bond,” he us. Th at is our trademark and the comments Australia. “We have many investors who are tells Th eEdgeProperty.com. we get from our buyers. And in a soft market investing in London so that their kids can stay Recently, Hartamas Real Estate bagged like now, some people in the industry resort there when they send them to study there. four awards — Top Real Estate Firm, Top to shady ways to maintain their sales num- Not to mention our government agencies Commercial Real Estate Firm, Top Project bers but for us we defi nitely do not partici- who are also investing in London proper- Marketing Firm and Top Commercial Real Kevin: pate in such things. ties. Same goes for Australia,” he explains. Estate Negotiator (REN) — at the annual One very “Also, our clients know that we are there Eric also notes that despite the soft Ma- National Real Estate Awards 2016 organ- clear for them. Th ese awards are just a refl ection laysian property market, the agency has ised by the Malaysian Institute of Estate characteristic of how we have served our clients,” he says. managed to maintain its sales growth. Agents (MIEA). that defi nes Having grown to fi ve offi ces across Malay- “Our growth is still there. For the following When asked what makes Hartamas Real us is sia and with as many as 250 employees, Eric is year, we hope to maintain the momentum Estate diff erent from other industry players, professionalism. looking to expand the agency to the northern or push even further,” says Eric. The mushrooming of co-working spaces

BY LUM KA KAY ic head of research Nicholas Holt. Kuala Lumpur is one of the key he advancement of cities to watch in this sector. While technology has given demand from oil and gas compa- rise to more flexible nies could weaken, fi nancial ser- working arrangements vices, technology and business and workplace inno- services are likely to “pick up the vations such as remote slack”, said JLL, while Knight Frank Tworking, co-working spaces and thinks that the possibility of work- teleconferencing. ing shoulder-to-shoulder with other In its “Fourth Industrial Rev- like-minded start-ups has proven to olution: Th e Impact on Real Es- be a signifi cant draw that appeals tate in Southeast Asia” research to these types of industries. report published in June 2016, JLL also expects the offi ce loca- international real estate services tion decentralisation trend to con- fi rm JLL expects fl exible working, tinue over the next fi ve years pow- outsourcing and co-working spac- ered by the improved connectivity es to accelerate in Southeast Asia and better infrastructure within the in the next fi ve years. Klang Valley. “In developed cities, co-working Looking beyond the pricing fac- and serviced offi ce spaces current- tor, Th eEdgeProperty.com spoke ly take up 1% to 5% of total offi ce to JLL Malaysia and Knight Frank stock but could grow between 20% Malaysia to fi nd out other factors and 30% by 2030,” the report noted. that prompt business owners to In Knight Frank’s 2017 Global adopt a co-working environment. Cities report, the firm noted that Knight Frank Malaysia execu- co-working spaces continue to be tive director of corporate services an attractive option for tech start-ups Teh Young Khean said fl exibility — off ering fl exibility, support and in- in tenancy terms is one of the ma- frastructure for nascent companies. jor factors. “Th e cost savings off ered by such “Also, business owners appreci- a work environment can also be very ate the feasibility co-working spac- compelling, with co-working spaces es can provide in terms of room for in Asia Pacifi c off ering some of the potential growth, without getting most signifi cant cost diff erentials locked into a space that may be when compared to traditional work too large or too small before the space,” said Knight Frank Asia Pacif- lease expires,” he said. JLL Malaysia managing director SAM FONG / TheEdgeProperty.com Y Y Lau concurred, saying that start- ups undergoing uncertainties and businesses undertaking short-term projects will benefi t from utilising co-working spaces. “Foreign or domestic companies which are not based in Kuala Lumpur but want to quickly set up a tempo- rary offi ce may consider co-working spaces as one can move in almost immediately with just a laptop since all the furniture and utilities are al- ready in place,” she said. Teh added that the open concept in a co-working environment al- lows for more collaboration among Lau: Start-ups undergoing uncertainties occupiers. and businesses undertaking short-term “A collaborative environment cre- projects will benefi t. ates more interaction opportunities for business owners or entrepreneurs * The leading tech district or submarket in each city and other professionals within or ** Traditional offi ce lease cost includes annual rent of 600 sq ft of offi ce space in addition to start-up costs out of their organisation group. It’s (fi t-out and agency) a networking platform,” he added. *** Co-working cost based on four desks in collaborative open plan environment Meanwhile, Lau said that busi- nesses may be attracted to co-work- ing spaces because they feel that lease on their own. hence would not consider oper- poached by competitors. Co-work- they can benefi t from a communal “A co-working space opens up ating in a co-working environ- ing spaces are probably more suit- setting with a trendy offi ce design access to the types of offi ces and ment, citing examples like law or ed for IT and marketing companies where they can meet business part- locations that smaller companies, accounting fi rms. as well as freelancers, start-ups ners or potential clients. freelancers and entrepreneurs Meanwhile, Lau said more es- and businesses working on short- She added that the address of want,” added Lau. tablished companies employing term projects. a co-working space is also a pull However, not every business is a large workforce who want their “Businesses would need to factor, citing Th e Co. in Bangsar suitable in a co-working space set- company branding in their offi ce balance the gains of networking as an example. up, noted the consultants. space may not want to be in a against the distractions, and po- “Th e Co. in Bangsar allows start- Knight Frank’s Teh pointed out co-working environment. tential loss of security, intellectual Teh: The open concept in a co- ups, entrepreneurs and freelancers occupiers who require strict priva- “Also, some innovative busi- property and talents when setting working environment allows for more to be in a business address that cy will need an enclosed space to nesses may be fearful that their up business in a co-working en- collaboration among occupiers. might not have been possible to keep their sensitive information, new ideas and talents may be vironment,” she said. Property development in 100 years’ time

n the 19th century, French artist Jean- tions that are aff ordably priced will be in de- Marc Côté and other artists produced a mand as long as they are in key locations near series of futuristic artworks called “En offi ces, public transportation and facilities. L’An 2000” or “In The Year 2000” that de- Space utilisation will be an important trend. picted scientific advances imagined as “Smaller units have to be designed in a way achieved by the year 2000. Among them, that fully utilises the room’s space,” he says. Iat a time when mobile homes were unheard “If we were to develop a dream project, of, was a painting of a house on wheels roll- it would be an integrated development with ing through the countryside, which has be- small units and surrounded by superb infra- come a reality today. structure,” he says, citing that public trans- From merely building a roof over our portation will provide added convenience heads, property developers today have come to homeowners and lower carbon footprint. up with lifestyle developments such as high- “Hopefully, we can achieve this project rise homes that off er a myriad of facilities in the near future. We also hope that the from rooftop gardens to infi nity pools to Malaysian property sector will continue to even jogging tracks and man-made beach- incorporate innovations to make lives easier.” es in the sky! With frontier technology, property mar- Tropicana: Diverse universal locations keting has also evolved as developers today Tropicana Corp Bhd group CEO Datuk Yau have embraced social media marketing to Kok Seng foresees property development to engage with their customers and adopted be more innovative and effi cient a century the latest virtual reality technology to pro- from now with technological advancement vide 3D virtual reality property tours. In the and as new lifestyle needs emerge. construction sector, we are seeing more With prime land becoming scarce, alter- pre-fabricated homes and “smarter” build- natives like fl oating cities in the sky, or under ing materials, including smart concrete that the sea and even underground, may be nec- heals its own cracks, double glazed glass, essary, he says, adding that colonies could and special eff ect paint coatings like the possibly even be set up on the moon or Mars. Nippon Paint Momento Special Eff ect Paint “Properties will be built at any conceivable that takes traditional paint to a whole new location. However, they may not be owned level! Th ese are things that people in the but rented because occupants may choose past couldn’t have imagined. to live at diverse locations, so owning prop- So what more does the future hold? What erties will not be economical,” he foresees. would future advances bring about in prop- Yau predicts the emergence of properties erty development? Here are four leading developers in Malaysia telling us what they public transportation in the city such as touch and feel the products. Virtual reality see in their crystal balls. MRT (mass rapid transit) and LRT (light rail may also enable you, your family and friends transit) and technologies such as Uber and to experience shopping together without SkyWorld: People - centric GrabCar changing the way people travel. leaving your homes or offi ces. developments “With the growing awareness of healthy Nevertheless, Chong believes the human Yau: With SkyWorld Development Group COO Lee living, we will also see the increase of sports touch and emotional experiences are ele- prime land Chee Seng foresees that developments facilities or parks,” he continues. ments that cannot be replaced despite the becoming would be more people-centric and focused rapid growth of technology. scarce, on quality community living. IJM Land: Smart cities “Without all these fundamentals, humans alternatives “Technology will play a big part in home With technology advancing at such a rapid will be no diff erent from machines. As such, like fl oating living; in enhancing communications, secu- pace, the world will be an entirely diff erent I believe that all trends related to emotional cities in the rity, conveniences like shopping and oth- place from today, says IJM Land Bhd man- aspects will remain.” sky may be ers,” he muses. aging director Edward Chong Sin Kiat. necessary. In the construction process, IBS (Indus- In the future, Chong expects building Mah Sing: Technologically equipped trialised Building System) may regulate how construction to be much more effi cient and A century from today, the property land- which are intelligent, interactive and com- buildings are constructed in the future while quicker with less use of natural resources scape will be very much technologically driv- plement the lives and habits of occupants, green building standards will be the norm. such as land, space and materials. en, says Tan Sri Leong Hoy Kum, the group like smart homes. “Th ey are like a learning “Adopting the Green Building Index (GBI) “Transportation is a major consideration managing director of Mah Sing Group Bhd. ecosystem of the occupants’ habits and is now an optional practice, it will possibly in today’s market but will be a thing of the past “With new technological innovations movements, adapting and changing accord- be compulsory in future,” he opines. while fl ying vehicles or maybe, just maybe, tele- emerging almost on a daily basis, homes in ing to their needs,” he explains. He expects three current trends to re- portation will be the new norm,” he visualises. the future will be equipped to make lives more He expects construction methods to main in the future — gated-and-guarded With driverless cars in testing and car shar- convenient. For example, homebuyers now- change with the introduction of advance developments, healthy and functional liv- ing already in the works, car ownership and adays are already looking at keyless options intelligent systems which are adaptive and ing environments, and the adoption of GBI consequently car parking requirements will and Mah Sing has incorporated keyless digital more automated such as 3D printing. features such as low-emission glass, inverter be reduced signifi cantly, thus creating a new locksets at its Cerrado Residential Suites in “Buildings could be ordered off the lifts, energy-saving lights, etc. trend in property development, he adds. @ KL South,” he adds. shelves, tailor-made to individual require- “Gen Z prefers smaller, more urbanised “Th ere will be seamless connectivity wher- Leong points out that construction will ments and built in the most effi cient manner and easier-to-maintain homes with better ever you go as cities turn into smart cities continue to focus on environmentally friend- with less or no human labour,” he imagines. security features, as we now see in Th ailand, where every movement and action can be ly systems as developers aim to minimise Yau suggests that future developers will Australia and Singapore, and it would be a monitored,” Chong says. wastage of raw materials while delivering play the role of platform providers, integrat- matter of time before Malaysia catches up,” Kitchens may have to make way for other sustainable homes. With greater awareness of ing technology and lifestyle needs. Lee predicts. uses as food and drinks may be in capsule or environment protection, Leong expects green ”With property development becom- “Parking bays may be reduced in tandem tablet form. Shopping may also be diff erent developments to be more popular in future. ing more innovative and effi cient, fuelled with the drop in car ownership with better where online stores will enable customers to He shares that small units in strategic loca- by the latest technology, it may result in domination by global players who are able to embrace the changes and excel in such conditions,” he muses. Looking ahead, Yau hopes there will be a Lee: With well-planned and balanced growth within the growing the urban areas in Malaysia. awareness Chong: Leong: of healthy Transportation Smaller living, we is a major units have to will see the consideration be designed increase in today’s in a way that of sports market but fully utilises facilities or will be a thing the room’s parks. of the past. space. TEP 20 FRIDAY OCTOBER 28, 2016 • THEEDGE FINANCIAL DAILY FENG SHUI

orming partnerships is part and chart allows you to use partnerships parcel of entrepreneurship. En- and you happen to chance upon a trepreneurs often ask whether a Forging partner who is about to enter good prospective partner is compati- luck, riding on the coat-tails of that ble. The basic understanding of person makes sense. compatibility is often seen when Clearly, trust and trustwor- Ftwo partners “get along” or “bring luck” to formidable thiness are but small factors to each other. take into account, everything BaZi consultants fi nd that clients often considered. A person may be give little consideration to the question as partnerships very trustworthy but if they are to whether they will have a good partner- in bad luck, their trustworthi- ship with a particular person, or whether ness isn’t going to help either the parties can actually profi t together and of you make money or achieve how long the partnership should go on for, success, and vice versa. or even what form it should take. Most im- Smart partnerships do not portantly, they also rarely give a thought BY DATUK JOEY YAP just involve partnering the right person, as to whether they themselves are suitable in the right kind of collaboration or ven- candidates for a partnership. tasks, then a suitable partner would be a ture, and at the right time. It also involves back-end type. It doesn’t matter how well managing the partnership so that should Getting a partnership rolling whether or not they are suited for endur- you get along — there can be no lasting it come to an end, it is done in a profes- Th e fi rst step must really be to ask yourself ing partnerships, or if they should adopt a success or successful partnership if one sional, amicable and minimally disruptive if you are the kind of person who can han- more freewheeling approach to partner- party isn’t hungry for success and the other manner. Log on to www.joeyyap.com to dle being in a partnership. Some people ships. Clients must be open to possibilities party is overly ambitious. see clearly how you can forge your own simply do not have a collaborative gene in in partnerships and also to an appreciation formidable partnership. them — working together with someone that a partnership can take many forms, The next big step is not something that comes naturally to with varying degrees of commitment. Part- Th en, we come to the question of timing. If you have any feng shui-related questions them. But often times we rarely consider nerships can manifest in many forms, like Is it the right time for you to embark on a for Yap, please go to the Tips section of ourselves in the question, and instead like equity partnerships, joint venture, sleeping partnership? Here, the individual’s luck, TheEdgeProperty.com. to put the onus on the other person. In BaZi, partners, relationships of convenience and as well as that of the prospective partner, a consultant has to consider the question one-off collaborations. is an important consideration in the equa- from both perspectives. Assuming your BaZi chart allows you tion when it comes to the success of a part- Datuk Joey Yap is the world’s leading Chi- You need to ask yourself if you actually to engage in partnerships, what kind of nership. nese Metaphysics consultant and bestselling need a partner, and the reason for it. Some person should you partner with? A busi- When both parties are in favourable Luck author of more than 160 books which have people don’t need a partner but simply want ness partner or business partners should Pillars at the time of their partnership, and the sold over four million copies worldwide. He someone on board because they don’t want complement you based on the “structure” Luck Pillars indicate opportunities through is chief consultant of the Joey Yap Consulting to do all the work. In BaZi, the general rule is of both your charts. For example, if you are partnership, then the partnership is likely to Group and founder of Mastery Academy of that Day Masters who are strong do not need an “ideas” person (Hurting Offi cer Struc- be very successful and profi table. On the oth- Chinese Metaphysics. His nearly two decades partners as much as Day Masters who are ture), then your partner should probably er hand, success comes in many forms, and of professional consultancy includes working weak, although there are exceptions to the rule. be an “operations” person (Direct Wealth sometimes people achieve success through with Microsoft, Sime Darby, UEM, Prudential Assuming the person can engage in part- or 7 Killings Structure). If your talents lie in partnerships simply by betting on the right and Citibank. He has students in more than nership, an additional consideration is interacting with customers or front-facing horse. If you are in not so good luck, but your 30 countries.