TEP 2 FRIDAY FEBRUARY 24, 2017 • THEEDGE FINANCIAL DAILY NEWS HIGHLIGHTS from TheEdgeProperty.com

volatile material pricing and unpre- Eco World International signs key IPO deals dictable currency exchange rates in the current business environment. Eco World International Bhd (EWI) Meanwhile, EWI has en- “We would like to help them man- The Edge Property has signed three key agreements tered into a master corner- age this by processing their payments with GuocoLand Ltd (GuocoLand), stone placement agreement every two weeks,” he said. “In return, Malaysia the Employees Provident Fund (EPF), with the IPO’s joint global co- we expect our contractors to put their Permodalan Nasional Bhd (PNB) ordinators namely CIMB and best people on our job and deliver and six banks for its initial public Maybank as well as EPF and quality work for our project.” off ering (IPO) exercise. PNB as cornerstone investors. The first agreement is a share The cornerstone investors Sime Darby Property subscription agreement with have agreed to subscribe an launches ‘Big 5’ GuocoLand, in which GuocoLand aggregate of 140.4 million IPO will take up a 27% stake in EWI’s shares or more than 30% of promotion enlarged issued and paid-up capital, the IPO shares allocated as Sime Darby Property is offering Publisher and Group CEO EWI president and CEO Datuk Teow part of the institutional of- first-time homebuyers and loyal Ho Kay Tat Leong Seng said. was also signed with CIMB Invest- fering, comprising 449.459 million customers discounts with its “Big 5” The agreement marks the entry ment Bank Bhd (CIMB), Maybank IPO shares and representing 18.7% promotion for selected properties of GuocoLand, a member of Hong Investment Bank Bhd (Maybank) of its enlarged issued and paid-up located in fi ve of its townships in the Leong Group, as one of three strate- and Hong Leong Investment Bank share capital. Valley and Negeri Sembilan. gic investors together with Eco World Bhd as joint managing underwriters The signing of the three agree- Launched on Feb 17 and ending Group Development Bhd (EcoWorld) and joint writers; and with Alliance ments will be followed with the is- on May 31, the promotion includes The Edge Property Sdn Bhd (1091814-P) and EcoWorld chairman Tan Sri Liew Investment Bank Bhd, AmInvest- suance by EWI of its prospectus in discounts ranging from 5% to 10%, Level 3, Menara KLK, No 1 Jalan PJU 7/6, , 47810 Kee Sin, added Teow. ment Bank Bhd and RHB Investment respect of the IPO, which is expected upfront PRIME or double PRIME dis- , , Malaysia A retail underwriting agreement Bank Bhd as joint underwriters. next month. counts, as well as a one-year com- plimentary Astro subscription pack- age. PRIME Th eEdgeProperty.com UEM Sunrise to was inked by both parties recently. BKP to shorten is a loyalty Managing Director/Editor-in-Chief The initial gross development and reward Au Foong Yee develop offices, payment period for apartments on value for the project is more than contractors programme EDITORIAL RM750 million. The unit sizes for the offered to its Editor Lam Jian Wyn MCOBA land in serviced apartments will range from Niche developer Bukit Kiara Prop- homebuyers. Contributing Editor Sharon Kam 1,100 sq ft to 1,500 sq ft. erties Sdn Bhd (BKP) has recently “We hope Deputy Chief Copy Editor Seputeh James Chong “We are very excited to announced that the processing of the Big 5 pro- Senior Copy Editor Sunrise Innovation Sdn embark on this synergis- their contractors’ payments would motion will in- Shanthi Murugiah Bhd, a wholly-owned tic venture with MCOBA. be changed from once a month to spire potential Writers Rachel Chew, Tan Ai Leng, subsidiary of UEM Sun- Seputeh is a mature res- every two weeks. homebuyers to fi nd their ideal homes Natalie Khoo, Shawn Ng, Lum Ka Kay Art Director Sharon Khoh rise Bhd, will undertake a idential neighbourhood, The initiative aims to assist con- that truly refl ect who they are,” said Design Team Nik Edra, Henry Lee mixed development pro- connected to KL city cen- tractors to maintain a healthy cash Sime Darby Property managing direc- ject on the Malay College tre and other urban areas fl ow during these challenging times, tor Datuk Jauhari Hamidi. For New Launches/Events/ Press Releases/News Tips Old Boys Association’s through Jalan Syed Putra and to encourage them to deliver bet- Participating properties are East email: [email protected] (MCOBA) land at Jalan and would appeal to city ter quality for BKP’s VERVE® Suites KL Residence in ALYA Kuala Lumpur, Tel: 03-7721 8211 Fax: 03-7721 8280 Seputeh, Kuala Lumpur dwellers due to its prox- South project, said BKP group manag- The Veo in KL East, Castilla, Si- Email: [email protected] to redevelop a new offi ce building, a imity to amenities and commercial ing director Datuk NK Tong during its phonia and Siphonia 2 in Chemara ADVERTISING & MARKETING banquet hall with a capacity for 1,200 hubs such as Mid Valley City and KL Business Associates Dinner recently. Hills, ’s The Brym- Head of Marketing and Sales people and two blocks of serviced Sentral. The development will become Tong said many business asso- wood and Villa Safira, as well as Sharon Chew (012) 316 5628 apartments. a new landmark for the locality,” said ciates are facing a tight cash fl ow, Planter’s Haven. Senior Account Managers Cecilia Too (012) 319 7666 The development agreement UEM Sunrise’s managing director and Jayne Law (016) 929 3309 CEO, Anwar Syahrin Abdul Ajib. Account Managers How do I get past issues of this weekly pullout? Jayremy Sim (011) 1669 6039 Go to TheEdgeProperty.com Jocelyn Poo (012) 611 5626 trending Marketing Support & Ad Traffi c to download for free Madeline Tan (03) 7721 8218 email: [email protected] now Email : [email protected]

NEGOTIATOR ADVISORY SERVICE If you have any real estate-related events, email us at [email protected]. Senior Manager Elizabeth Lay LAUNCHES + EVENTS Senior Associate Stannly Tan Events listed here will also appear on TheEdgeProperty.com. Associate Karen Wong

For enquiries and listings Unveiling of Trio show unit architecture and design industry Jade Square @ Jade Hills email: [email protected] soft launch GL: (03) 7721 8175/ 8172 Date: Feb 25 (Sat) including Datuk Seri Lim Chong Email: [email protected] Time: 6pm to 10pm Keat, Jalaini Abu Hassan, Date: Feb 25 and 26 Venue: Trio Sales Galleria, Lot Hijjas Kasturi, Datuk Hajeedar (Sat and Sun) 82623, Jalan Langat/KS06, Bandar Abdul Majid, Pamela Tan Poh Time: 10am to 5.30pm TheEdgeProperty.com pullout is published by The Edge Property Sdn Bukit Tinggi 1, Klang, Selangor Din and Dr Tan Loke Mun. Venue: Jade Hills Sales Gallery, Bhd. It is available with The Edge Contact: (011) 1212 2535 Persiaran Jade Hills Utama, Financial Daily every Friday. The / (017) 385 2735 Funbruary at Cybersouth Jades Hills, , Selangor pullout is also distributed at more than 200 offi ces, shopping complexes, S P Setia Bhd will be unveiling Date: Feb 26 (Sun) Contact: (03) 8741 0707 project off ers double-storey condos, medical centres, F&B outlets the show unit of its Trio mixed Time: 10am to 5pm introduces bungalows and semi-dees. and LRT stations in the . development in Klang with Venue: Cybersouth Property Jade Square, a new You can also download it for free at fun-fi lled family activities Gallery, , Selangor commercial landmark at Exclusive launch of St John’s www.TheEdgeProperty.com such as a lion dance, 3D photo Contact: (019) 243 5071 its Jade Hills township in Place, Manchester booth, food bazaar, fi reworks, / (019) 683 4995 Kajang. It comprises 2- to Date: Feb 25 and 26 (Sat and Sun) lucky draw and others. MCT Bhd is bringing fun to 3-storey retail spaces. Time: 11am to 6pm Th e Edge Malaysia families for the entire month Refreshments will be served. Venue: Level 2, Straits Art and Architecture EDITORIAL of February. Spend the day Boardroom, Westin Editor-in-Chief Azam Aris Symposium frolicking in the sun doing Grandezza show village Hotel, Kuala Lumpur CORPORATE Date: Feb 25 (Sat) fun activities. Snacks and opens @ Eco Sanctuary Contact: (012) 3260 8000 Chief Operating Offi cer Lim Shiew Yuin Time: 3pm to 5pm meals will be served. Date: Feb 26 (Sun) / (012) 908 6318 ADVERTISING & MARKETING Chief Commercial Offi cer Venue: Pertubuhan Akitek Time: 11am Situated in the heart of Sharon Teh (012) 313 9056 Malaysia, 99L, Jalan Tandok, Venue: Eco Sanctuary, UK’s Manchester city centre General Manager Bangsar, Kuala Lumpur Lot 41296, Persiaran Eco and directly adjacent to Kingston Low (012) 278 5540 Senior Sales Managers Contact: (03) 2693 4182 Sanctuary, Telok Panglima Spinningfields — the Fong Lai Kuan (012) 386 2831 Organised by PAM or the Garang, Selangor central business district of Gregory Thu (012) 376 0614 Malaysian Institute of Architects Contact: (03) 3344 2525 Manchester — St John’s Place Kamalesan Parama (012) 394 4855 Michael Tan (012) 213 0252 in conjunction with the opening Eco World Development Group is slated for completion by Creative Marketing reception of Khoo Sui Hoe @ Bhd invites all to visit the show 3Q2020. Prices start from Chris Wong (016) 687 6577 PAM Centre, the symposium village featuring its Grandezza £227,500 (RM1.26 million) for Head of Marketing Support & Ad Traffi c features talents from the project at Eco Sanctuary. The a 1-bedroom apartment. Lorraine Chan (03) 7721 8001 Email: [email protected]

TEP 4 FRIDAY FEBRUARY 24, 2017 • THEEDGE FINANCIAL DAILY FRI NEWS

RM Value of overhang units in the primary cre the stro for residential market up 80% y-o-y con

ab sha BY NATALIE KHOO an the KUALA LUMPUR: Some RM8.27 billion Residential overhang units in Malaysia (3Q2013-3Q2016) abo worth of completed homes on the prima- ry market have gone unsold as of the third ert quarter of 2016 (3Q2016). Price range Completed units Unsold completed units Overhang value (RM mil) pro Th is marks an 80% rise in the residental 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q overhang value compared with RM4.6 bil- 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 ket lion a year ago. RM50,000 or less 7,721 5,670 2,557 3,213 1,532 922 419 433 62 39 16 17 “Th is huge rise in value is mainly contrib- Jen uted by properties in the RM500,001 to RM1 RM50,001 - RM100,000 12,088 7,639 6,554 7,632 3,459 1,856 1,231 1,492 288 153 101 119 no million segment which saw an increase in RM100,001 - RM150,000 5,774 7,226 3,611 4,438 1,271 1,391 818 909 162 180 107 123 ren value of 141% from RM956 million in 3Q2015 rise to RM2.3 billion in 3Q2016,” revealed Val- RM150,001 - RM200,000 5,413 4,590 4,230 4,570 1,540 1,049 929 899 263 184 161 158 in 3 uation and Property Services Department RM200,001 - RM250,000 3,635 3,991 5,266 3,996 830 1,046 1,132 913 193 237 258 209 it s director general Dr Rahah Ismail. RM250,001 - RM300,000 3,248 4,430 3,288 4,303 818 1,033 1,025 1,316 225 283 285 370 7.4 For properties above RM1 million, the total value of overhang units rose by 87.7%, RM300,001 - RM400,000 3,832 3,784 5,202 4,603 967 716 1,031 1,367 341 255 373 504 ma from RM2.04 billion in 3Q2015 to RM3.83 RM400,001 - RM500,000 2,226 3,544 2,909 4,824 563 555 658 1,437 248 249 301 639 the billion in 3Q2016,” Rahah added. RM500,001 - RM1,000,000 3,174 4,220 6,836 17,413 633 984 1,425 3,344 433 664 956 2,304 Of She said this when giving an overview the of the Malaysian property market to par- More than RM1,000,000 4,612 3,851 5,201 7,820 1,610 629 1,079 2,083 2,755 1,117 2,042 3,827 tha ticipants at the 10th Malaysian Property MALAYSIA 51,723 48,945 45,654 62,812 13,223 10,181 9,747 14,193 4,968 3,361 4,598 8,267 Pri Summit 2017 organised by the Associa- nee tion of Valuers, Property Managers, Estate JPPH in Agents and Property Consultants in the PICTURES BY SAM FONG | TheEdgeProperty.com it k Private Sector Malaysia (PEPS), yesterday. make up the highest number of overhang can Meanwhile, in terms of volume, over- units followed by fl ats (283 units), terraced the hang units rose by 46%, from 9,747 units homes (218 units), cluster homes (129 rat in 3Q2015 to 14,193 units in 3Q2016. Th ere units), semi-detached homes (118 units), were 62,812 completed units as at 3Q2016, detached homes (68 units) and townhous- Fer up 37.6% on a y-o-y basis. es (15 units). ma “Even though there was an increase in She also noted that the sales performance ma both unsold completed units and completed of properties (ratio of properties sold within ine units, the ratio of the unsold completed units (From left) Foo, Rahah nine months to new launches) in the pri- to completed units remains in the normal and Fernandez at the 10th mary market has worsened to 27.4% for the sm range of about 21%-22% similar to previous Malaysian Property Summit period of 1Q2016 to 3Q2016 as opposed to im years,” Rahah noted. 2017 organised by PEPS, 41.9% for the period of 1Q2015 to 3Q2015. so Condos and apartments (1,238 units) yesterday. “Only properties in the price range of he

Residential market may pick up “Th e sector will need strong econom- Mall oversupply ic boosters, such as a commodity rally or soon, says Kenanga sharp increase in foreign direct investment, situation to take or easing of banking sector liquidity to the sector or policies that address aff ordability issues. Nevertheless, we do not see these at least three BY RACHEL CHEW really happening yet,” Lim explained. Lim: If history She foresees the value of transacted resi- years to improve KUALA LUMPUR: Residential property is going to dential units this year to be marginally weaker transactions may pick up soon as Malay- repeat itself, at -2% year-on-year. BY SHAWN NG sia’s residential property absorption rate has transactions are “We also expect Malaysia’s house price hit a 14-year low, according to Kenanga In- likely to start index to grow at a low single-digit in 2017. vestment Bank Bhd head of equity research levelling off . Th e exception is Selangor because of high KUALA LUMPUR: The retail mall market Sarah Lim. urbanisation rates,” Lim shared. is expected to take three to four years from “Th e bottoming eff ect can be seen. Ma- Among all the landed residential property now to improve as more malls open in the laysia’s residential absorption rate is now types, Lim also noted that semi-detached/ next few years adding to the oversupply in at a 14-year low while the major states are detached homes, especially in the Klang retail spaces, said Savills (Malaysia) Sdn seeing nine to 10-year lows,” Lim said dur- Valley are usually the best performers in the Bhd managing director Allan Soo. ing her presentation at the 10th Malaysian long run — with a capital appreciation per He told the audience at the 10th Ma- Soo Property Summit 2017 organised by the annum of 14% (Kuala Lumpur) compared laysian Property Summit 2017 that the mar Association of Valuers, Property Managers, with 12% for terraced homes. industry has been hindered by multiple Estate Agents and Property Consultants in calculation is based on transactions divid- “Although it appears that terraced homes challenges including reduced tourism, ers the Private Sector Malaysia (PEPS) at Sime ed by the total existing supply and incom- may be the best bet for the long run, during implementation of the Goods and Ser- ant Darby Convention Centre yesterday. ing supply. Th e higher the rate, the better bull times, semi-detached/detached homes vices Tax (GST), retailers’ margins being pre Kenanga’s data showed that the current the market is. off er better price appreciation and they are reduced due to the weakened ringgit, poor per overall residential absorption rate is at a new Meanwhile, citing Kenanga’s population often the best performers,” she noted. market sentiment and shrinking dispos- low of 3.5%, compared with the 10-year aver- analysis, she said the incremental popula- Commenting on the current trend in able income. the age of 4.5%. Lim also stressed that all major tion of base demand, such as those who are the landed residential property sector, Lim In addition, the rise in construction ha states are seeing similar trends. turning 30 years old or fi rst-time homebuy- mentioned that townships seem to be the cost, higher cost of advertising and pro- opm “Th is is largely due to aff ordability issues ers, has gone back to pre-2007 levels now. trend. “So, is buying earlier in a township a motion, and additional capital expenditure exacerbated by a mismatch of product pric- “Th is also means that overall residential good investment bet? It may appear so but of providing rent-free periods for tenants and ing and tighter banking liquidity in the sec- transactions are similar to pre-2007 levels. If you should take into consideration your have also impacted mall developers and clu tor,” Lim said in her presentation entitled history is going to repeat itself, transactions holding power because there will be mul- operators, he added. KL “Landed residential market performance are likely to start levelling off ,” she said. tiple new phases and very low to no yields Held at the Sime Darby Convention Py and outlook”. However, she does not see any major cat- at the beginning. High capital appreciation Centre, the summit was organised by the Su She explained that the absorption rate alyst for recovery yet. occurs only when there is sizeable popula- Association of Valuers, Property Manag- tion mass,” she said. FRIDAY FEBRUARY 24, 2017 • THEEDGE FINANCIAL DAILY TEP 5 NEWS

RM200,001 to RM250,000 saw an in- crease in sales by a huge margin from Teega @ Puteri Harbour the others signifying that there is still a strong demand and opportunities for af- fordable properties in this tough market condition,” said Rahah. to start handover process Homes below RM300,000 took up about 69.6% of the secondary market share during the period between 1Q2016 from end-February and 3Q2016 in terms of volume while the same segment of properties took up about 46.5% of the primary market share. PICTURES BY UEM SUNRISE BY NATALIE KHOO Currently, secondary market prop- Teega@ erties make up about 82% of the total Puteri property market. ISKANDAR PUTERI: UEM Sunrise Bhd is set Harbour is Q “You can see that the secondary mar- to see the handover of its serviced apartments Anwar: 95% sold to 6 ket is still holding strong,” said Rahah. and offi ces at its mixed development Teega @ Teega has date. Meanwhile, PEPS president Foo Gee Puteri Harbour (Teega) in Iskandar Malaysia, its own 7 Jen, who was also present at the event, Johor by the end of this month. distinctive 9 noted that the property market is cur- Teega was launched in 2012. It comprises appeal as 3 rently stable, with a 5.3% annual price Teega Residences, a 35-storey tower that of- it off ers rise in the Malaysian Housing Price Index fers 736 serviced apartment units with sizes a unique 8 in 3Q2016 (preliminary fi gure) although ranging between 886 sq ft and 4,457 sq ft; waterfront 9 it saw a dip as opposed to a year ago at Teega Suites, a 35-storey tower that off ers 556 living. 0 7.4% y-o-y. serviced apartment units with sizes ranging “People are always asking when the from 485 sq ft to 1,621 sq ft; Teega Tower, a (RM700 psf) to about RM1,000 psf currently. School and Marlborough College Malaysia 4 market will recover, but in actual fact 26-storey tower with 51 offi ce suites with sizes “Teega has its own distinctive appeal as it and 5km from EduCity. 9 the property market is actually stable. ranging from 2,103 sq ft to 2,363 sq ft as well off ers a unique waterfront living, coupled with Common facilities include the outdoor 4 Of course, it is not like those times when as a 4,888 sq ft Sky Café; and Teega Walk, a its strategic location and close proximity to lei- lap and spa pool, yoga terrace and tai chi there were double-digit growth but I feel 2-storey retail component with 28 units rang- sure and recreational attractions, education zone, floating gym, wellness path, tennis 7 that this is a more sustainable growth. ing from 515 sq ft to 3,341 sq ft. hub and ferry terminal. It is highly accessible court, herbs garden, children’s playground, 7 Prices of homes are holding. Th e growth “Our residences and offi ces are more than by road and sea as it lies adjacent to the Puteri multi-purpose function hall, car-washing bay needs to be in tandem with the growth 95% sold. Th e remaining apartment units left Harbour International Ferry Terminal, the In- as well as CCTVs. “Th e units have spacious JPPH in salaries of the population as well. If for sale have built-ups ranging from 485 sq door Th eme Park, Marina Satellite Clubhouse balconies for views of the public and private it keeps growing at double digits, how ft to 4,457 sq ft with prices from RM500,000 as well as the Johor state’s administrative centre marina,” said Anwar. ang can people aff ord to buy houses when to RM5.37 million. Meanwhile, Teega Walk — Kota Iskandar,” Anwar explained. Also at Puteri Harbour, phase 1 of the ced their salaries do not increase at the same is currently open for lease. [Th e focus will It is within a 5 to 10 minute drive from the developer’s 394-acre Estuari township, the 29 rate?” said Foo. be] on food and beverage and convenience Coastal Highway, the North-South Highway Estuari Gardens, which comprises terraced ts), Summit organising chairman Elvin shops,” UEM Sunrise CEO and managing and the Malaysia-Singapore Second Link. It homes, is expected to be completed in the us- Fernandez noted that the residential director Anwar Syahrin Abdul Ajib told is also located 3km from the Raffl es American second half of 2017. market will not collapse so easily as it is Th eEdgeProperty.com. nce made up of many individual and genu- He noted that although they are not able hin ine buyers. to disclose the list of tenants yet, residents pri- “Th ese buyers are unlike investors. Th e can look forward to a strong mix of quality the small amount of speculators will unlikely operators. d to impact the property market that much According to Anwar, early buyers of Tee- 15. so as to cause a major drop in prices,” ga would have seen a capital appreciation of of he noted. about 40% from the launch price back in 2012

y area of 8 sq ft per capita and in some ar- eas like Petaling Jaya, it is more than 16 e sq ft per capita,” he said. Going forward, there are another seven megamalls that will open progressively, including MyTOWN Shopping Centre, Empire City, TRX, Pavilion Bukit Jalil, e Pavilion Damansara and Paradigm Mall in OUG, which will push up the retail space in Greater Kuala Lumpur to about 73 million sq ft in 2019 from 60.21 million sq ft as at end-2016, he added. ket Soo pointed out that incoming supply om will be a big issue for the market even if the demand increases. y in “As such, we won’t see a better time dn for the market in the next three to four years. It will take more than three years Ma- Soo: Incoming supply will be a big issue for the to improve,” he said. he market even if demand increases. He believes the rental and occupan- ple cy rate for new malls will be depressed m, ers, Estate Agents and Property Consult- in the future. er- ants in the Private Sector Malaysia. Soo’s According to Savills’ data, the aver- ing presentation was entitled “Retail market age occupancy rate in Greater KL was oor performance and outlook”. down from 91.7% in 2012 to 89.2% as at os- He noted that over the past few years, end-2016. the higher plot ratio on commercial land “Is it a good time to build malls? The on has resulted in more commercial devel- quick and short answer is no, because ro- opments, thus creating more retail supply. now is a time for us to sit back and look ure Currently, there is a total of 160 malls at the figures to think of the next move, nts and hypermarkets in the Klang Valley, in- unless you are building a different mall nd cluding seven megamalls namely, Suria that targets specific tenants,” he said. KLCC, Pavilion KL, Mid Valley, Sunway However, Soo reckons that now is prob- on Pyramid, 1 Utama, IOI City Mall and ably a good time to sell malls as more the Sunway Velocity Mall, he said. funds and overseas retailers are interested ag- “We have reached a retail mall floor in investing in the market. TEP 6 FRIDAY FEBRUARY 24, 2017 • THEEDGE FINANCIAL DAILY FRI COVER STORY

ith the hubbub on the sof- tened property market, not dat even Penang, especially Best ho Penang Island, known for 4Q its land scarcity and ex- act travagant property pric- performing Wes, is spared. However, in this snail-paced PENANG Isl growth, what can Penang offer to homebuy- Isla ers and investors? housing lan According to data from the National of Property Information Centre (Napic), as sch at 3Q2016, the overall volume of transac- Pen tions had declined 13.4% y-o-y with 4,382 projects on Sch transactions recorded in 3Q2016 as op- ISLAND lies posed to 5,060 transactions a year earlier. BY NATALIE KHOO Total value of transactions in Penang had ho also dropped accordingly by 10.1% y-o-y sq to RM2,152 million compared to RM2,393 RM million in 3Q2015. and Bayan Baru with a CAGR of 17%, 16%, Teluk Kumbar also near the Penang International Airport, Executive director of PPC International 15%, 14% and 12%, respectively. Sunway Aspera and Teluk Kumbar Heights thus off ering easy accessibility, especially ave Penang Sdn Bhd Mark Saw says the cooling Meanwhile on Penang mainland, the with a CAGR of 17% and 16% respectively for frequent travellers between the main- es h measures introduced by the federal and highest CAGR was recorded at Taman Murai are both located in Teluk Kumbar. Teluk land and the island, says Saw. has state governments have aff ected Penang’s Jaya, Taman Keenways, Taman Mangga and Kumbar is located at the south west district “While two-storey terraced houses at the property market performance over the past Taman Impian Murni with a CAGR of 37%, which is popular with homebuyers as it is Bayan Baru area [located next to Bayan Lep- Tam three years, as evident from Napic’s data. 29%, 28% and 27%, respectively, mainly due located near the Second Bridge or Jambat- as], with a land area of 1,200 sq ft to 1,300 sq An Executive director of PA International to their low entry levels. an Sultan Abdul Halim Muadzam Shah. It is ft, have asking prices of RM900,000 to RM1 cen Property Consultants (Penang) Sdn Bhd million, similar houses in Teluk Kumbar 14% Michael Loo concurs that the property mar- are still available for less than RM800,000,” pro ket in 2016 had further consolidated with Catalysts/growth areas says Ooi. and the overall sales activity on a downtrend According to Landserve’s transaction since 2015. Developments along in Penang Island data, in 2016, a unit at Sunway Aspera with hig “It could be due to various reasons such the Tun Lim Chong Eu a land area of 1,302 sq ft was transacted for Sha as the strict loan approvals for end-fi nanc- Expressway which have good RM778,000. However, based on Th eEdge- coa ing, and the cautious sentiments over the infrastructure connectivity Property.com’s data, Sunway Aspera’s aver- aw economic slowdown which have prompt- to the mainland, Bayan Baru age transacted prices have already breached eve ed developers to defer their launches and Satellite City and Georgetown the RM1 million mark. In 4Q2012, the average push back plans for development,” says Loo. Inner Heritage City transacted price of Sunway Aspera terraced 2-s When will the market recover? Executive houses was RM627,275 while in 3Q2016, siz director of Landserve Penang Sdn Bhd, Ooi the average transacted price has shot up to fet Choon Seong does not foresee a recovery this RM1.17 million. mi year, but expects no price reduction overall Over at Teluk Kumbar Heights, the av- due to the rising cost in building materials erage transacted price for terraced homes to Th and land for new property launches. was RM560,000 and this rose to RM998,000 can On the other hand, Saw is more optimis- in 3Q2016. mi tic. “Based on historical property cycles, we “With just 5 to 10 minutes of travelling Fut can anticipate that the market has stabilised The coastal line that links time [to Bayan Lepas from Teluk Kumbar], and an upward swing is expected in due Batu Maung - Bayan the pricing appeals to homebuyers,” explains “Pe course for the second half of 2017,” he says. Lepas – Gelugor – Jelutong Landserve’s Ooi. He also notes that the on- esp Indeed, the real estate consultants think – Georgetown – Gurney going upgrade of a one-lane road from Jalan defi this is a good time to go bargain-hunting. Loo, Drive - Tanjung Tokong Teluk Kumbar to Jalan Bayan Lepas into a and for instance, points out that some property with its sea frontage and two-lane road will further improve connec- est owners who are facing liquidity problems infrastructure connectivity. tivity once it is completed in 2018. are may be prepared to cash out at low prices. Notable developments along Bayan Baru “With fewer buyers, sellers may be more the coastal line are Southbay Ho willing to compromise. A price adjustment @ Batu Maung by Mah Sing Also in the south west district is the Bayan S P between 5% and 10% is expected. Price Group, Queens Waterfront Lepas/Bayan Baru area, a mature area with per correction is a healthy development in a @ Bayan Lepas by Ideal many amenities such as the Penang Inter- Clo property cycle when prices have reached Group, Quay West Residence national Airport, factories (Bayan Lepas ma the peak,” Loo opines. @ Bayan City by AsiaGreen Free Industrial Zone), commercial areas While the landed housing market on Group, Penang World City and the new Subterranean Penang Inter- Th Penang Island has slowed with prices facing @ Bayan City a JV between national Convention and Exhibition Centre ma a correction, there are housing areas that Tropicana Corporation Bhd SPICE (formerly known as PISA). “Th ese the are faring better than others. and Ivory Properties, The have infl uenced the demand for properties Pen Penang Transport Master Based on data collated by Th eEdgeProp- Light Waterfront @ Gelugor there. Moreover, as most are landed proper- nel Plan, which is currently in erty.com, the terraced housing projects or & Jelutong by IJM Group, ties, the demand will always be there, hence the works, will bring positive areas on Penang Island with the highest com- and Straits Quay @ Tanjung prices will continue to increase in the Bayan an impact if approval is granted pound annual growth rate (CAGR) between Tokong by E&O Group Baru area,” Saw notes. mi 4Q2012 and 3Q2016 based on their average by the federal government Ooi concurs, adding that the Bayan Lepas live transacted prices were Sunway Aspera, Teluk Industrial Zone houses many MNC factories Ma Kumbar Heights, Island Park, Taman Saw Kit with large workforces. LR PA INTERNATIONAL

Average transacted price of terraced homes in Penang Transacted volume of terraced homes in Penang Top 7 terraced home projects/areas on Penang Island 7 with the highest CAGR (4Q2012 to 3Q2016) o fr 1Q2012 412,845 1Q2012 1,187 Sunway Aspera 17 3Q 379,385 3Q 1,194 Teluk Kumbar Heights 16 1Q2013 396,852 1Q2013 934 Sat

3Q 426,871 3Q 1,150 Island Park 15

1Q2014 435,425 1Q2014 881 Taman Saw Kit 14 3Q 408,479 3Q 1,089 Bayan Baru 12 1Q2015 426,963 1Q2015 759 Co 439,304 3Q 3Q 532 Taman Island Glades 10

1Q2016 433,513 1Q2016 401 Georgetown 9 3Q 477,617 3Q 368 0 5 10 15 20 0 100,000 200,000 300,000 400,000 500,000 0 300 600 900 1,200 1,500 FRIDAY FEBRUARY 24, 2017 • THEEDGE FINANCIAL DAILY TEP 7 COVER STORY

According to the Th eEdgeProperty.com’s Butterworth line as this will defi nitely en- Loo of PA International says, adding that to Penang Island. Th e current property de- data, the average transacted price of terraced hance connectivity and balance up the de- public transport is crucial on the island to velopment shift to the mainland is because homes in Bayan Baru was RM405,000 in velopment between Penang Island and the ensure the liveability of the city. there is a lack of land for landed housing 4Q2012 while in 3Q2016, they were trans- mainland. We believe they can be linked the Loo says Penang mainland has always on the island. “In the long term, however, acted at an average price of RM639,333. way Hong Kong and Kowloon are linked,” been perceived as an aff ordable alternative the island and mainland are supposed to complement each other so that Penang as Island Park a whole will emerge as a developed and Island Park, Jalan Besi which is in the Green- integrated state.” lane area and which recorded a CAGR By his estimate, the transaction volume of 15% is located near several prominent of landed houses in Penang has dropped schools such as Chung Ling High School, by 20%, when comparing the January to Penang Free School and Han Chiang High September periods of 2015 and 2016. School, making the area attractive to fami- Comparing those two periods, he also lies with school-going children, off ers Ooi. notes that the 2 and 2.5-storey semi-de- “In 2015, there were 2-storey terraced tached houses on the mainland are the houses there with a land area size of 1,400 only types of landed houses that saw higher sq ft to 1,800 sq ft which were transacted at sales in terms of volume albeit slightly (2%). RM998,000 to RM1.3 million,” he says. Meanwhile, Saw notes that the demand ort, Th eEdgeProperty.com’s data shows the for terraced homes on Penang Island is now ally average transacted price of terraced hous- Saw: In recent years, Penang has Loo: Property owners who are Ooi: There may be no price lower than the demand on the mainland. in- es here was RM943,333 in 4Q2012 and this seen a move towards reclamation facing liquidity problems may be reduction overall due to the rising “It happens as properties on the island has jumped to RM1.63 million in 3Q2016. of land. prepared to cash out at low prices. cost in building materials and become increasingly expensive. Never- the land for new property launches. theless, despite the shift in focus to the ep- Taman Saw Kit mainland in the last few years, the landed sq An old housing estate which has seen re- housing market on the island remains fi rm M1 cent price growth is Taman Saw Kit (CAGR Catalysts/growth areas as new supply is limited coupled with pull bar 14%), in Sungai Nibong. Ooi notes that the factors such as good job opportunities and 00,” project’s main draws are its connectivity in Penang mainland In Seberang Perai Utara the improvement in infrastructure on the and accessibility. (SPU), four areas in island,” he says. on “Taman Saw Kit is over 30 years old. It is Butterworth will be restored Housing aff ordability ith highly accessible from Jalan Sultan Ahmad under the Butterworth for Shah which leads to the town area and the Action Plan in a partnership Housing affordability on Penang Island ge- coastal roads. It is also about 10 minutes between the Seberang Prai has been a concern for many years and the er- away from Queensbay Mall, so pretty much Rejuvenation of the old town Municipal Council (MPSP) state government has increased the devel- hed everything is taken care of,” Ooi adds. through the expansion of and Think City. Aim is to opment plot ratio to encourage aff ordable age Based on Landserve’s transactions, three Taman Pantai and through transform Butterworth housing projects. Land reclamation and ced 2-storey terraced houses here with a land the Butterworth Fringe into a powerhouse of redevelopment projects of high-rises may 16, size of between 1,400 sq ft and 1,500 sq ft Festival (BFF) trade, tourism, housing also help alleviate the issue. p to fetched between RM960,000 and RM1.2 and mobility that will “In recent years, Penang has seen a move million in 2015. complement Georgetown. towards reclamation of land. Th is new sup- av- Th e average transacted price according ply of land and better planned develop- mes to Th eEdgeProperty.com, has risen signifi - ments will translate into more efficient 000 cantly from RM620,000 in 4Q2012 to RM1.05 products and eco-friendly buildings. With million in 3Q2016. higher density developments, developers ing can, through economy of scale, produce less ar], Future growth areas expensive properties and more aff ordable ins “Penang has many areas for future growth, housing,” Saw says. on- especially on the mainland. Batu Kawan is Cleaning up of Prai river Meanwhile, Loo suggests that trans- lan defi nitely one of them. Seberang Prai Utara and the coastline, aimed at forming the mainland into a vibrant city o a and Tasek Gelugor have also attracted inter- developing both areas into can encourage Penangites to choose the Creation of a central business ec- est and we look forward to seeing how these recreational spaces and mainland as their home. Th is in turn could district at Penang Sentral, areas will develop,” off ers Saw. tourist attractions help soften the property prices on Penang Th e recent announcement of Boustead currently under construction Island. Holdings Bhd selling its Malakoff estate to near the Penang port, by yan S P Setia for RM8.50 psf or over RM370,000 leveraging the transport hub General outlook ith per acre augurs well for this area, he adds. for commercial development While short-term challenges remain for er- of the surrounding area current investors until the property market pas Closing the gap between island and stabilises and improves, Penang Island will eas mainland continue to attract investors from near and er- Th e connectivity between the island and far in the long term. tre mainland is expected to be enhanced with “It has that tropical island appeal, while ese the proposed Light Rail Transit (LRT), off ering world-class medical care combined ies Penang Undersea Tunnel and cross-chan- In Seberang Prai Selatan with a relatively low cost of living and a er- nel cable car. Big projects in Batu Kawan (SPS), the Penang whole host of gourmet choices, plus good nce “Th e Bayan Lepas LRT alignment project coming up such as Aspen Development Corporation, education facilities for those with young yan and Pan Island Link highway were deter- Vision City, IKEA, KDU is creating a development families,” says Saw. mined as the fi rst components in the de- University College and corridor across 30,000 acres For Loo, the property market of Penang pas livery sequence of the Penang Transport others of land in SPS Island is expected to be stable in the coming ies Master Plan. We think the fi rst phase of the few years with the price correction process LRT line should include the Georgetown to expected to bring a new equilibrium. PA INTERNATIONAL

SOURCE: TheEdgeProperty.com 7 most expensive terraced housing projects/areas Top 7 terraced homes projects/areas on Penang 7 most expensive terraced housing projects/areas on on Penang Island by average transacted price (RM) mainland with the highest CAGR (4Q2012 to 3Q2016) Penang mainland by average transacted price (RM) from 3Q2015 to 3Q2016 from 3Q2015 to 3Q2016 Taman Murai Jaya 37 Permai Gardens 1,680,000 Taman Desa Cahaya 702,000 Taman Keenways 29 Sathu Terraces @ One Residence 1,768,000 Taman Bukit Minyak Permai (BM Permai) 720,000 Taman Mangga 28 Taman Gelugor 1,792,750 Orange Villa 730,000 Taman Impian Murni 27 1,800,000 D’Residence Palm Villas 754,000 Taman Gamelan Indah 25 Cordelia @ Taman Pantai Indah 1,888,000 Taman Permai 818,000 Taman Sri Rambai 22 Pulau Tikus 2,324,500 Taman Segar 850,000 Taman Cengal 21 Bandar Tanjong Pinang 2,519,676 Taman Indah 902,000 0 5 10 15 20 25 30 35 40 0 1,000,000 2,000,000 3,000,000 0 300,000 600,000 900,000 1,200,000 1,500,000 TEP 8 FRIDAY FEBRUARY 24, 2017 • THEEDGE FINANCIAL DAILY FEATURE Tech and networking critical to cross-border transactions

KENNY YAP | TheEdgeProperty.com BY LUM KA KAY “Information technology has Yeo will be sharing more of his opened a new world of opportu- thoughts on the topic in a forum ot only is technolo- nities for increased cross-border titled “Cross-border transactions gy important in help- transactions [although] at the same forum” to be held at the upcoming ing real estate agents time, it poses a great threat to con- Malaysian Annual Real Estate Con- in terms of market- ventional market players who fail vention (MAREC‘17) on March 3 and ing, but it also plays a to keep up with the new world of 4 at Convention Centre in huge role in facilitat- technology,” Singapore’s Institute of , Selangor. The conven- Ning cross-border property trans- Estate Agents (IEA) president Har- tion is organised by the Malaysian actions. ry Yeo told TheEdgeProperty.com. Institute of Estate Agents (MIEA).

Soma: Real estate practitioners Yeo hopes that Asean countries should always look beyond their could provide clearer regulatory local property market. guidelines for cross-border property transactions.

Joining him at the forum tions work. “It is important to will be Harvest-Time Prop- make friends with everyone. erties Sdn Bhd principal Sue For instance, when a client Ding, Arborland & Co principal wants to purchase a property Datuk Seri Gavin Tee, National in, say Vietnam, how would Association of Realtors presi- you know what’s hot there? dent’s liaison to Malaysia Yin “Things would be easier if Bihr and Hartamas Real Estate you can just refer to a trustable Sdn Bhd group managing di- Vietnamese counterpart, who rector Eric Lim while MIEA knows the property market president Erick Kho will be there,” he said. Soma is one of the moderator of the session. the three founding members According to Yeo, besides of Arena, the other two be- speaking about what is hot in ing IEA immediate past pres- the regional real estate mar- ident Jeffhery Foo and Phil- ket, he will also touch on the ippines Association of Real latest challenges and oppor- Estate Boards past president tunities that participants face Nelson Wee Arquiza. in cross-border transactions According to Soma, real es- that arise from the digital evo- tate practitioners should al- lution. ways look beyond their local Among the ongoing efforts property market. “I always say to facilitate regional property to the agents, it’s time for us to transactions include contin- go beyond the local borders, uing education training and we should go outbound! Or market updates on cross-bor- at least start thinking about der transactions. it already,” he offered. “In addition, international On Arena, he hopes one day networking and cooperation the alliance could be the of- of governments, real estate in- ficial reference point for real dustry associations and other estate practitioners in South- related professional institu- east Asia. tions of various countries in “The membership of Arena the region would also facili- is based on each participating tate regional property trans- country’s association member- actions,” said Yeo. ship. Meaning if you’re a mem- Moving forward, he hopes ber of your country’s real es- that countries in the Asean tate association, you’re part of region could open up more Arena. Hence, we have a huge and provide clearer regulato- pool of talents and resources ry guidelines for cross-border for us to tap into,” he said. property transactions. Arena currently consists “Th is would provide a higher of eight member countries: degree of certainty in property Malaysia, Cambodia, Indo- investments in their respective nesia, Myanmar, Singapore, countries. By doing so, it would Thailand, the Philippines and certainly strengthen cross-bor- Vietnam. der transactions,” said Yeo. Themed, “Transforming Meanwhile, MAREC‘17 will your real estate business in a also see Asean Real Estate Net- changing era”, MAREC‘17 will work Alliance (Arena) head K feature other speakers from Soma Sundram speaking on various industries — includ- the topic “Making friends — ing start-ups — to talk about connecting business the Ase- adapting to change in this digi- an model”. tal era. For more details on the He said networking is key in convention, go to miea.com. making cross-border transac- my/marec17. FRIDAY FEBRUARY 24, 2017 • THEEDGE FINANCIAL DAILY TEP 9 FEATURE The fi ve toughest properties to sell

HARIS HASSAN | TheEdgeProperty.com BY SHAWN NG unethical estate agents may de- says one way is to emphasise cide to hold back or keep silent the positive aspects of it. For in- elling a property can about such facts from potential stance, the property could be in be made more diffi- buyers. a vibrant neighbourhood or near cult if the property However, according to the an upcoming development that suffers from certain Malaysian Estate Agency Stand- would have a positive effect on conditions. Among ards, an estate agent is not al- the future capital appreciation these are the pretty lowed to conceal any material and rentals in the area. Sobvious ones such as run-down facts about a property including He feels it is important to be properties that need lots of re- the “non-tangible” factors men- honest with buyers and inform pairs or renovations done and tioned above. them if the unit has any nega- properties along a congested Malaysian Institute of Es- tive issues. People usually react main road. tate Agents (MIEA) national strongly to negative information However, there are other not vice-president Lim Boon Ping if they discover them late or on so apparent factors which may tells TheEdgeProperty.com that Lim: An estate agent shall not To Teo, diffi cult properties can be their own, he says. hinder the property from being Clause 5.2.7 of the Malaysian Es- mislead prospective parties by easy to sell if the price is right. “As a real estate agent or ne- sold. Properties where a mur- tate Agency Standards says that concealing or withholding material gotiator, you have to ensure that der or suicide had occurred, or “an estate agent shall not mislead facts related to the property. you have a reasonable seller who even the belief that a house is prospective parties by conceal- understands and acknowledges haunted, can scare buyers away. ing or withholding material facts may be tough to sell but accord- at the right price and strategy. the problems on their property Such factors could also devalue a related to the property”. ing to a few experienced estate Property Hub Sdn Bhd senior and are willing to fix them, or set property while some sellers and Such “problematic” properties agents, one can still sell them real estate negotiator Roy Teo the price accordingly,” he adds.

1. “Haunted” property

In Malaysia, a house that is be- aged to sell off three “haunted” haunted will not stop if the unit lieved to be haunted is one of the terraced houses in East Malaysia is left empty, so I cleaned up the Tips on how to sell most diffi cult properties to sell. which he had acquired over the unit and got people to stay in it to According to a real estate inves- past 16 years. end the rumour, and it worked,” “hard-to-sell” properties tor, the way Malaysians deal with “Th e fi rst house I bought was he says, adding that the foreign • Be honest with the buyers haunted houses is totally diff er- a single-storey terraced house, workers did not complain about • Understand the buyers’ needs ent from westerners. which had been left vacant for any paranormal activities during • Reduce asking price “What I have found is that some a long time. Rumour has it that their stay. • Highlight the positive aspects westerners may be willing to stay the house was haunted, but I’m He did the same thing with the • Discuss with the owner to fi x the problem in a house believed to be haunted. a Christian and am not afraid of other two houses and they turned On the contrary, Malaysians are ghosts, so I bought it at a cheap out to be good investments for him. more afraid of ghosts and such price,” he recalls. “Th e three houses were all sold and we will try to avoid staying in He then rented the house out after a few years. It was a great deal so-called haunted houses. for a few years to some foreign for me because I had bought them Th e investor, who does not want workers before he found a buyer. at 30% to 35% below their market to be named, however, had man- “Rumours about a house being price,” he concludes. 4. Ground-fl oor units of high-rise residences

2. “Suicide” property Ground-floor units in a strata the entrance was just next to the property are usually not favoured lift lobby. by buyers due to several reasons, Th e unit was also slightly darker MIEA past president and Herit- of the owner, a Th ai woman, had buyer, you have the responsibility including concerns over safety, than others and had less privacy age Shield Real Estate Sdn Bhd committed suicide in the house. to share it with them,” he adds. noise, privacy and the limited than the upper units. CEO K Soma Sundram had one “Th is put me in a great dilemma. As such, he told the story to the views. “After being on the market for unforgettable experience, which I hesitated on whether to tell the clients who came to see the house, However, the units can easily many months, and with the asking was about 20 years ago when he prospective buyer, but I decided to and it was sincerely appreciated be sold when targeted at the right price reduced, I fi nally sold it to was appointed to sell a terraced be honest in the end because for by them. person. a buyer who had a phobia about house in where a suicide me, a real estate agent’s business After three months, Soma sold Teo once sold a ground-fl oor not being able to use the lift in the had happened. is not just about making money, it the house to an Indian couple who condominium unit in Mont’Kiara, event of an electricity disruption, The owner failed to tell him is a profession, ” he says. was undeterred by the history of Kuala Lumpur. Th e view from the lift breakdown or fi re,” he says, add- about the history of the house but “If the information is critical the house, and who off ered a good living hall and bedroom was to- ing that the unit on the ground level he found out that the second wife enough to aff ect the decision of the price for it. wards the walkway outside while was a perfect match for the buyer.

3. “Smelly” property 5. Properties close to a construction site

Property Hub’s Teo once sold a The house had been on the if you are standing outside the Noise, dust, bad roads and pos- tion machineries and trucks were terraced house which was about market for more than six months house, but the house just could sible heavy traffi c caused by the using the same access road just 100m away from an aerated oxi- when he took over. The problem not sell,” he recalls. construction of a project will often next to the entrance to the luxury dation pond. was the nasty smell coming from Nevertheless, he was able to drive buyers away. condominium, he says. the pond. secure a buyer after two months For example, when the massive Nevertheless, Teo still managed “You will only notice [the smell] once he began to market the construction works on Daman- to sell a number of units there by house by emphasising its pos- sara City’s mixed development in highlighting the positive prospects itive aspects, including the at- Damansara Heights, Kuala Lum- of the project and the location while tractive price. pur began around 2013, it was stressing that the construction is “The owner had already re- very challenging to sell the units just a temporary problem. duced the asking price several at Twins @ Damansara Heights, “I told buyers that this is a good times, making it very attractive,” which sits right next to the devel- opportunity to pick up a unit at a he adds. opment, off ers Teo. discounted price due to the prob- To Teo, difficult properties can Twins @ Damansara Heights lems. Now the buyers who bought be easy to sell if the price is right units were aff ected because half at that time are able to enjoy good because there are always bargain of the units were facing the noise capital appreciation and rental hunters who are willing to pick up and dust from the construction yield as Damansara City has been these properties. site. Besides, the heavy construc- completed,” he says.

TEP 12 FRIDAY FEBRUARY 24, 2017 • THEEDGE FINANCIAL DAILY HOME IDEAS

Tricks to create Using mirrors With the right placement and dimensions, mirrors can have a profound eff ect an illusion of a in creating space. We are not talking about hanging a few framed mirrors on spacious home some walls but placing them strategically. For instance, a full length mirror running horizontally across a living BY TAN AI LENG room pretty much “doubles- up” that very space itself. One could also place mirrors MALL homes and even tiny homes have on the ceiling above a living been in trend for those seeking back-to-ba- room or dining area. This sics, practical living spaces. Young couples will defi nitely give you much or singles also choose such homes because more spatial depth and the of their limited budget. However, living in impression of a double-void small spaces does not mean having to live ceiling. Sin cramped and messy conditions. With certain tools or design tricks, you could easily create an illusion of space. Interior design company Linear Design managing director Cheng W Loong says as the size of residen- tial units get smaller, many homeowners are seeking SUNWAY PROPERTY smart ways to utilise space and to choose functional furniture that gives a space more room or at least the spacious look and feel. Cheng observes that as the population increases over time, and land and construction costs escalate, home sizes are getting smaller. Hence, the interior planning, layout and design of a property have become impor- tant elements for homebuyers. “Whether spaces become smaller these days or not, nobody would want a home that looks small and cluttered. Th e fact is, more space, or the illusion of a bigger space, is always at the top of a homeowner’s list,” he tells Th eEdgeProperty.com. Because of this, interior design has given substan- Cheng: The desire for tial attention to space planning and concepts. a bigger home space Here are some tips and tricks you can use to cre- is always on the top of ate “more room”. anybody’s list.

Using light-toned colours Using a light base colour throughout the fl oor and walls and ensuring corresponding furniture pieces are within the same group of shades will make a space look much bigger than it is. A suggestion is to paint the walls and Drawing focus to specifi c accents ceiling white and have the fl oor tiles in If your dining room or some corner of your home happens to have a high an off -white tone. With this base palette, ceiling space, you can use some simple decoration to extend the view from the dining chairs can be kept in white horizontal to vertical. One way is to place framed pictures/art to fi ll the empty while the sofa set can be of a light cream space of a wall leading to the ceiling. Besides this, homeowners could also fi nish. With just some furniture, wall hang some elaborate ceiling lights above the dining table with a long vertical panels, rugs and decorative items as mirror panel magnifying them. accent pieces, the design looks complete The objective of all these is to give the impression that there is much going without being too monotone. on, creating an illusion of space expansion.

Smart furniture design Symmetry There are times when we need to create extra space for Ultimately, to create space, symmetrical lines and approaches should be applied. If we place furniture and other items into sensible clear lines, a spatial storage. Clever interior design can make this happen. For depth will immediately appear. It must also be noted that the furniture selected should be rectangular to minimise any deviation from the objective of instance, one can consider building an open wardrobe or achieving symmetry. display shelf beside an elevated bed.

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