EP 2 FRIDAY MARCH 30, 2018 • THEEDGE FINANCIAL DAILY

NEWS HIGHLIGHTS from www.EdgeProp.my

KL ofˎ ce market struggles but Two Putrajaya Grade A co-working space demand on the rise ofˎ ce buildings worth A stronger performing economy has not helped the offi ce RM600m up for sale property sector as it continues to struggle with an oversupply of new Two Grade A offi ce buildings in Putra- as they were unable to get satisfacto- buildings of 11 storeys and 15 sto- buildings amidst subdued leasing jaya valued at RM600 million have ry occupancy or yield, sources said. reys each, has a GFA of 1.04 million activities, said global consultancy been put on sale as their owner — a Menara Tulus, which consists sq ft and an NLA of 594,200 sq ft, fi rm Knight Frank. US-based private equity fund — is of two towers of 10 storeys and 15 and comes with 436 parking bays. In its “Asia-Pacific Prime Office unable to pay its debt, reported The storeys each, has a gross fl oor area Both buildings are freehold. Rental Index 4Q17” report, Knight Edge weekly. (GFA) of 558,059 sq ft, a net lettable Menara Tulus is held by TRW Frank has projected Kuala Lumpur Menara Tulus and Menara Ikhlas area (NLA) of 335,695 sq ft and 246 Boulevard Square Sdn Bhd while offi ce market rentals to be on a down- in Precinct 3 came into receivership parking bays. Menara Ikhlas is held by Boule- ward trend in the next 12 months. just fi ve years after their completion Menara Ikhlas, comprising two vard Plaza Sdn Bhd. “The growing mismatch between supply and demand continues to The Edge Property Sdn Bhd (1091814-P) exert pressure on overall rental and average, said Bank Negara Malaysia with the number of borrowers with middle-income households. Level 3, Menara KLK, occupancy levels. (BNM) in its “Financial Stability and at least three outstanding housing “With PR1MA HAVEN, PR1MA No 1 Jalan PJU 7/6, Mutiara “On a positive note, with rising Payment Systems Report 2017”. loan accounts — a proxy for spec- homeowners and registrants can Damansara, 47810 Petaling Jaya, Selangor, Malaysia demand for co-working space ca- The report stated that the re- ulative purchases — having grown enjoy exclusive privileges from our tering to the growing millennial jection rate of housing applications by a mere 0.9% in 2017 compared merchants, to help them create EdgeProp.my workforce, 2018 will see active en- currently stands at 23.1%, below the with 1.2% in 2016 and 15.8% in 2010, their dream homes faster and at quiries and leasing activities from 2012-2016 average of 26.1%. making up less than 3% of total discounted rates,” he added. Managing Director/Editor-in-chief Au Foong Yee co-working operators,” said Knight Reasons for rejections include housing loan borrowers. The benefits offered include Frank Malaysia executive director of insuffi cient income to support debt discounts on household appli- EDITORIAL corporate services Teh Young Khean repayment, adverse credit history PR1MA ances, furniture, kitchen cabinets, Executive Editor Sharon Kam in a press release. and inadequate income or fi nancial wardrobes and electrical appli- Editor Lam Jian Wyn launches rewards Deputy Chief Copy Editor Overall, the index has increased documentation. ances. James Chong 0.7% q-o-q and 1.1% y-o-y in 4Q17. “The improvement refl ects the programme The programme was launched Copy Editor Geraldine Tan The increase in the index was the greater alignment between bank All Perbadanan PR1MA Malaysia March 27 by Minister in Prime Min- Senior Writer Rachel Chew result of rising rents in 12 of the 20 lending standards and borrowing (PR1MA) homeowners and reg- ister’s Department Datuk Seri Sha- Writers Natalie Khoo, markets tracked over the quarter, with behaviour, in line with the Policy istrants are entitled to exclusive hidan Kassim, in conjunction with Shawn Ng, Lum Ka Kay Art Director Sharon Khoh rental declines experienced in four Document on Responsible Financ- privileges and discounts from a wide “Ekspo Jualan Perumahan — Ke Design Team markets. ing,” said BNM in the report. range of participating merchants Arah Sejuta Impian”, the largest Jun Kit, Rajita Sivan Meanwhile, financing extended through the newly launched PR1MA nationwide housing expo hosted by

For New Launches/Events/ Housing loan to fi rst-time buyers for the purchase HAVEN, a rewards and recognition PR1MA. Press Releases/News Tips rejection rate of homes priced below RM500,000 programme. To enjoy PR1MA HAVEN benefi ts, email: [email protected] made up about 71% of total housing PR1MA CEO Datuk Abdul Mutal- users simply need to download the Tel: 03-7721 8211 Fax: 03-7721 8280 below average loan borrowers. ib Alias said PR1MA HAVEN is an mobile application via App Store or ADVERTISING & MARKETING The rejection rate of housing loan Speculative activities in the res- initiative to help reduce the impact Google Play and register. Associate Account Director, applications has declined to below idential market have been subdued of escalating costs of living among Advertising & Marketing Heidee Ahmad (019) 388 1880 Senior Account Manager Ian Leong (012) 359 1668 trending How do I get past issues of this weekly pullout? Account Managers Go to www.EdgeProp.my to download for free. Khairul Amilin Ismail (019) 426 5101 now Joane Tan (012) 377 2885 Maddox Wong (012) 342 2707 Joyceline Tan (012) 693 5826

Marketing Support & Ad Trafˎ c If you have any real estate-related events, email us at [email protected]. Madeline Tan (03) 7721 8218 LAUNCHES + EVENTS Events listed here will also appear on www.EdgeProp.my. email: [email protected]

NEGOTIATOR & CUSTOMER ‘A Healthier You’ double-storey linked homes Organised by UEM Sunrise Tiaraville property ADVISORY SERVICE by Beverly Group measure 20ft by 70ft. Bhd, Sukaseni supports local roadshow Senior Manager Elizabeth Lay Senior Associate Stannly Tan Date: March 31 (Sat) entrepreneurs and communities Date: March 26 to April 1 Time: 11am to 6pm Sunset Happy Hour in promoting Malaysian (Mon to Sun) For enquiries and listings Venue: Equine Residence Date: March 31 and April artisan brands and crafts. It Time: 10am to 10pm email: [email protected] GL: (03) 7721 8175/ 8172 Sales Gallery, Taman Equine, 1 (Sat and Sun) will kick off at the monthly art Venue: Aeon Bandaraya Melaka, Seri Kembangan, Selangor Time: 4pm to 8pm market at Arcoris Plaza this Jalan Lagenda, Melaka EdgeProp.my pullout is published Contact: (03) 2162 4567 Venue: Tropicana Metropark, weekend. Besides an array of Contact: (03) 8143 2299 by The Edge Property Sdn Bhd. It is available with The Edge Financial Beverly Group invites all to its Jalan Delima 1/1, Subang Hi- arts and crafts vendors, there Lion Group is having a week- Daily every Friday. The pullout Equine Residence sales gallery to Tech, Subang Jaya, Selangor will also be performances. long roadshow in Melaka that is also distributed at more than learn how to kick-start an organic Contact: (03) 7713 8888 ends this weekend. It will be 200 ofˎ ces, shopping complexes, condos, medical centres, F&B outlets lifestyle. There will be nutrition Fancy some gin and pastries? One Cochrane showcasing its residential and LRT stations in the Klang Valley. talks, healthy oats-making demo Residences launch development Tiaraville Resort You can also download it for free at www.EdgeProp.my and health screenings. Admission Date: April 1 (Sun) Homes located at the Tiara is free but seats are limited. Time: 9am to 5pm Melaka Golf and Country Club. Venue: One Cochrane Sales Serenia Amani launch ‘Gateway to the Global Th e Edge Malaysia Gallery, Jalan Cochrane, Date: March 31 (Sat) Lot 1246, Kuala Lumpur Halal Market’ talk Publisher and Group CEO Time: 8.30am to 5pm Contact: (03) 9200 8008 Date: April 5 (Thurs) Ho Kay Tat Venue: Serenia City Sales Boustead Properties Bhd will be Time: 2pm to 4pm

EDITORIAL Gallery, Lot 27999, Jalan Pintas Venue: Level 1, Malaysia Editor-in-Chief Azam Aris Dengkil-Putrajaya (FT29), Bandar Tropicana Corp Bhd invites International Trade and CORPORATE Serenia, Sepang, Selangor all to have a spectacular time Exhibition Centre, Jalan Chief Operating Ofˎ cer Lim Shiew Yuin Contact: (03) 8760 0505 with friends while enjoying Dutamas 2, Kuala Lumpur ADVERTISING & MARKETING Serenia Amani is the fi rst a great sunset view at Contact: (019) 7276 769 / Chief Commercial Ofˎ cer residential launch at Sime Tropicana Metropark. RSVP (011) 3311 7363 Sharon Teh (012) 313 9056 Darby Property’s new township for free tickets via Tropicana Organised by United Malayan General Manager Kingston Low (012) 278 5540 in Sepang, Serenia City. The Corp’s Facebook page. Land Bhd, the talk focuses Senior Sales Managers on Johor’s Iskandar Halal Fong Lai Kuan (012) 386 2831 Sukaseni Sunday launching condominium project Park as an ideal investment Gregory Thu (012) 376 0614 Art Market Creative Marketing One Cochrane Residences at location for the manufacturing Chris Wong (016) 687 6577 Date: April 1 (Sun) Jalan Cochrane this weekend. and trade of halal products Head of Marketing Support Time: 11am to 8pm The registration for queue and halal-related services & Ad Trafˎ c Venue: Arcoris Plaza, 10, Jalan numbers will start at 9am while to serve markets worldwide. Lorraine Chan (03) 7721 8001 Kiara, Mont’Kiara, Kuala Lumpur unit selection will be at 1pm. Registration is free with Contact: (03) 2718 7788 limited seats available. FRIDAY MARCH 30, 2018 • THEEDGE FINANCIAL DAILY EP 3 PICTURE FOR ILLUSTRATION PURPOSES ONLY ILLUSTRATION PICTURE FOR

How you can rent a property and still make capital gains

hen it comes to growing personal wealth, Malaysians How can you do it all? fi rst, buy later” scheme to support youths today have plenty of opportunities and avenues. But the main While the middle-age population has reaped the to attain homeownership. objective you should focus on is how to maximise your benefi ts of the growth in property prices since their One of the latest initiatives by Maybank is the wealth within your personal capacity. Malaysians are fi rst purchase 10 to 30 years back, the new and up- introduction of HouzKEY, a “rent fi rst, buy later” currently not saving enough for rainy days. According coming workforce in Malaysia is feeling the pinch. programme that allows you to rent with an intention Wto a Khazanah Research Institute report in 2016, each household only Properties are no longer a social need but an ex- to purchase the homes you choose, at a minimal saves 1.4% of their monthly income. pensive commodity that few can invest in. upfront requirement. Instead of a typical 10% to While this refl ects a low saving culture, Malaysians are also wired The traditional way to enter into a home pur- 15% upfront cost, you only need a 2% commitment to put money in various forms of investments, diversifi ed in several chase will be to pool all savings and investments as a form of a security deposit that is refundable formats to get your money to work for you. And there are plenty of as a down payment for a home. Seems like a big when you exit the programme. investment avenues such as stock trade, unit trusts, investment ac- sacrifi ce for a piece of ownership of a home but Imagine being able to own a home without hav- counts, insurance/takaful and property investments. the burden remains with the need to continue ser- ing to part with a chunk of your savings or invest- Among these are a few stellar investment assets that you will vicing the loan that could stretch for as long as ments. It’s no longer a zero-sum game but a win- likely venture into in your pursuit to maximise your investment re- 35 years. To purchase a home of RM500,000 value win situation for those who want the best of both turns. Let’s view a few comparisons below to give some perspective requires you to save up for that initial RM50,000 worlds, without sacrifi cing their current or future on popular investment instruments’ performance over the mid to to RM60,000 (for down payment and miscellane- retirement/needs. long term. ous charges), which is not an easy feat and will In essence, the highest potential for wealth creation will fall back take years. on property investment. Asians in general are fond of investing in The fi rst rule of investment is to never put all Aff ordability, certainty and wealth real estate to benefi t their future generations and there is no need your eggs in one basket. If you have started small creation to question why. With land being scarce and as strategic locations investments in a few avenues, continue to keep One major benefi t for HouzKEY customers is that get exponential benefi ts from urbanisation, property prices will them and be disciplined to grow this investment you are shielded from any property price rise in the continue to rise and be able to weather strong cyclical movements pool. But how can all these help you to enter into market. What’s more, Maybank allows tenants under in the economy. homeownership or property investment? Can you this programme to switch to buying the property fi nd a better fi nancing solution that addresses without a need for down payment after just a one- your current concern on the large upfront cost year period at a price that could be lower than the Investment returns — how they compare which is also in line with your current and fu- initial locked-in price. ture cash fl ow? Apart from a buying option, customers who Investment Employees Amanah Amanah Property entered with an investment mindset can exit the Provident Saham Saham investment scheme by exercising the option to cash out (as Fund Bumiputera Nasional Financial opportunity soon as after the fi rst one-year rental period) and (EPF) (ASB) (ASN) The optimal solution for homebuyers and inves- realise the investment returns from the price ap- tors is to have an easy entry into a home purchase preciation of the property. Dividend/ 6.02% 8.47% 5.67% 3.77% that eliminates the down payment requirement How does that work? The participant will fi rst yield and also helps to defer all the required upfront buy the property from the bank on paper, after Unit N/A N/A N/A 7.13% expenses such as legal fees, stamp duty on Mem- which the property will be sold to another buyer appreciation orandum of Transfer and so on. In addition, if the at the price set by the participant. As the “seller”, living expenses such as rent can be deemed as you gain capital appreciation without even owning Notes: a monthly commitment for a home purchase, it the property! From an investment perspective, that 1. EPF, ASB and ASN dividends are based on a 10-year horizon, from 2008 helps many renters with good payment record to sounds good, doesn’t it? to 2017. be able to own a home in one to two years’ time If you’re looking to own a home or invest in a 2. Property yield is based on Kuala Lumpur location gross yield for 2017 from www.globalpropertyguide.com/Asia/Malaysia/Rental-Yields. without additional costs. It may not be a norm property but think you can’t aff ord it, think again. 3. Appreciation is based on National Property Information Centre (NAPIC) in Malaysia but there is a rising need for a “rent This scheme could be what you’ve been waiting for. data on residential property prices in Kuala Lumpur from 1999 to 2015, where CAGR is 7.13% p.a.

Brought to you by: Interested? All you have to do is go to www.maybank2own.com, choose the property you want to rent and eventually own, submit your application online and get your approval in 24 hours! For more information on HouzKEY, go to www.maybank2own.com or chat with us on our live webchat. EP 4 FRIDAY MARCH 30, 2018 • THEEDGE FINANCIAL DAILY NEWS

Malaysia tops More education Airbnb guest arrival needed on strata management, growth in Asia says Rehda

BY LUM KA KAY fi rst Southeast Asian city to have Airbnb “Plus” with LOW YEN YEING | EdgeProp.my a launch within 2018. PETALING JAYA: Malaysia has set the highest growth “Th e Airbnb Roadmap aims to deliver a magical rate of all Airbnb markets in Asia with a 137% y-o-y end-to-end trip for every traveller. With this Roadm- growth in 2017 to hit 1.5 million arrivals into the ap, Airbnb ensures that the platform off ers a local, country. unique and authentic way to travel as an alternative “Th e 137% inbound guest arrival growth, or 507,100 to commoditised mass tourism. Looking forward to more guest arrivals, is the highest among all Asian the next 10 years, we want everyone to be able to ex- markets. Hospitality is intrinsic to the Malaysian cul- perience this way of travelling. ture, and we see an interest in people wanting to open “Bali is a global destination for many travellers, up their homes to travellers, providing an authentic especially in Southeast Asia. We launched Airbnb and local experience,” an Airbnb spokesperson told Experiences in Bali in November 2017, which off ers EdgeProp.my. carefully curated activities led by local hosts who will Malaysia has around 31,900 listings as of end- share an insider view of their city with curious travellers. 2017 — 69% more than the previous year. Th e top fi ve “[Ever since then] the popularity of Airbnb Expe- countries where Airbnb travellers to Malaysia orig- riences in Bali has surged, making it one of the top inate from are Singapore, China, the US, Indonesia 15 markets worldwide and the second-most booked and Australia. Experiences in Asia, trailing behind Tokyo, which was (From left) Jeffrey Ng, FD Iskandar and Ngian. Airbnb listings in Kuala Lumpur alone have reached launched a year ago,” said the spokesperson. 11,200 listings — a 65% jump. Th e most popular areas According to Airbnb, in 2017, there were 25.6 in Kuala Lumpur are KLCC, , Kampung million inbound guest arrivals in Asia Pacifi c while BY SHAWN NG Th e handbook was created with Baru, Brickfi elds and, interestingly, . outbound guest arrivals were 25.9 million. input from various professional In February, the home-sharing platform launched As of March 20, the home-sharing start-up had PETALING JAYA: All stakehold- bodies and experts including the “Plus” and “Beyond”, which saw the platform off ering launched more than 40 Airbnb Experiences in Kua- ers, particularly the public and Malaysian Institute of Architects premium lodging options for travellers in 13 cities, la Lumpur, joining 60 other global destinations that property developers, need to be (PAM), the Department of Survey including Los Angeles, Toronto, Milan and Shanghai. are going beyond home-sharing and off ering local educated on their responsibilities and Mapping Malaysia, legal fi rm Th e spokesperson said Bali, Indonesia will be the tours and activities. in strata living and management. Chur Associates, as well as feed- This is to ensure an orderly back from Rehda members. and harmonious communal liv- Rehda Institute chairman ing environment in the country, Datuk Jeff rey Ng noted that due to said the Real Estate and Housing land scarcity and higher land costs, Key Developers’ Association Malaysia strata high-rise living is becoming (Rehda). more common in Malaysia. “We have to educate both the “Statistics from the National ˎ gures public and also our fellow [Rehda] Property Information Centre members. We have seen beautiful, showed that as of the third quar- As at end-2017 award-winning developments that ter of 2017, there are a total of 1.58 are completed not too long ago — million residential strata units, 25.6 million maybe fi ve to six years ago — be- housing some 20% of the pop- come an issue about two to three ulation. inbound guests years after their handover,” Rehda “It is therefore crucial that all president Datuk Seri FD Iskandar parties involved in strata living, Asia Mohamed Mansor told reporters from developers and management 25.9 million after the launch of the Strata Man- bodies to owners and residents, be outbound guests agement Handbook on March 29. equipped and empowered with Paciˎ c “Let’s be honest — we are very knowledge of strata living to en- good at building things, but when sure harmonious living as well as it comes to managing them, we proper maintenance and manage- are not so good. So this is some- ment that will enhance their liv- thing we have to change, not only ing experience and value of their Malaysia Top through rules and regulations, but investments,” he said. Selamat also through education,” he added. Meanwhile, Rehda national datang! fi ve Th e more common problems council member and editor of the in strata property management handbook Ngian Siew Siong said 1.5 million visitors include owners who fail to pay there are a lot more that can be to Malaysia maintenance fees, lift breakdowns, done, judging by the current con- arrivals Singapore issues with the upkeep of common dition of buildings in the country. 137% y-o-y area, renovation works that do not “Th e purpose of this book is to comply with rules and property educate strata property owners owners’ reluctance to participate about what strata management is, in the management. so that they can build a cohesive and The Strata Management harmonious community,” he said. Handbook is published by Rehda Th e book is available online via Institute — the training, research Rehda Institute’s Facebook page China Indonesia and education arm of Rehda — and website for RM58. to provide a guide into the obli- Also present at the launch were 31,900 listings gations, duties, responsibilities, council member Ng Lip Khong, 69% y-o-y powers, rights, procedures, expec- Rehda Negeri Sembilan branch tations, limitations and liabilities chairlady Jenny Wang, PAM of the respective parties involved president Ezumi Harzani Ismail, in strata living and management. National Housing Department 11,200 listings “We have to educate everyone director-general Jayaselan US Australia that each person has a duty in K Navaratnam, Rehda Institute in Kuala Lumpur making community living a great trustee Tan Sri Eddy Chen and 65% y-o-y one. Th ere must be buy-in from Rehda national treasurer and everybody for it to work,” said FD Rehda Institute trustee Datuk Iskandar. Muztaza Mohamad. FRIDAY MARCH 30, 2018 • THEEDGE FINANCIAL DAILY EP 5 FEATURE What it takes to be a registered property manager

BURGESS RAWSON (MALAYSIA) W M MALIK & KAMARUZAMAN Sarkunan: If during the years of service, BY NATALIE KHOO you were a practising real estate agent and if you provided services to your cli- building that is well tak- ents in managing your clients’ properties en care of will always look and fulfil the requirements of past prop- good, keep its users safe erty management experience, then you and maintain or even gain Wong: As a Kamaruzaman: should apply to be a property manager in value. However, it is of- professional, he After the ‘window [under the Board]. ten easier to develop a pro- has to abide by period’ closes, the Aject than to maintain it. Even a world-class all the laws and requirements to be Q: For joint management bodies and man- building will need enough care to ensure regulations relating registered will be agement corporations, do they need to that it maintains its status. to his practice. tougher. register themselves as property managers? Behind every well-managed building is a If they do not register with the Board, are team led by a property manager who works they allowed to call themselves property painstakingly to ensure its upkeep. registration. We expect at least 5,000 regis- KJ: It doesn’t matter, as long as the letter managers after the window period? “Th e property manager is a qualifi ed pro- trations with us by the end of the year. Every [from your employer] confi rms your expe- KJ: Th e Act says that if you are managing your fessional who is competent and experienced month, the task force will sit down to review rience [in property management]. own property, you are exempted from being in the management and maintenance of the applications. After the ‘window period’ registered. You cannot provide this service buildings. As a professional, he or she has to closes, the requirements to be registered Q: Can I be a practising lawyer and at the to another property. You are not allowed to abide by all the laws and regulations relating will be tougher,” said Kamaruzaman, who same time take on the role of a registered use the name “property manager” if you are to his practice including Act 242, Act 757, Act is also a senior member of BOVAEP. Th us, property manager? not registered with the Board. 318, the Malaysian Property Management he encourages all property managers who David: You can only choose to practise one Standards and other relevant regulations,” wish to practise to use the opportunity to profession at one time. You cannot be a Q: During the “window period”, if I have said Burgess Rawson (Malaysia) group man- register themselves with the Board during practising lawyer and a practising property a diploma and I pursue a Masters pro- aging director Wong Kok Soo at a seminar this window period. manager at the same time. gramme after that, can I treat the Masters titled “Being a registered property manag- Aside from Wong and Kamaruzaman, the as a degree in my qualifi cation? er” organised by the Malaysian Institute of other two speakers during the seminar were Q: Can a registered estate agent be a reg- KJ: No, a Masters is not a degree. A diploma Professional Property Managers (MIPPM) David Soosay and Co advocate and solicitor istered property manager? suffi ces for you to apply. on March 14 in Kuala Lumpur. EdgeProp.my David Soosay who spoke on the profession- was the media partner. al liability of property managers and Knight Property managers who manage the com- Frank Malaysia senior executive director mon property in strata developments deal Matthias Loui who talked about conducting Criteria for registration with strata management — and this involves building audits. Also present was MIPPM fi nancial management, insurance manage- president and Knight Frank Malaysia man- ment, implementing by-laws, meetings and aging director Sarkunan Subramaniam. DURING the window period (Jan 2 to Dec 31) administrative management, buildings and Th ere was also a Q&A session after the facilities maintenance, repairs and refurbish- presentations. Here are some of the ques- 1. Past property management experience 2. Declaration of: ment, security, safety and emergency man- tions raised: a) Experience at managerial level a) No police record agement, tenancy and lease management (refer to the table below) b) No cases of mismanagement and even human relations management, Q: If I am a practising engineer [but I do b) Experience in at least one c) No breaches of fi duciary duties Wong explained. not have experience in property manage- of these areas: d) Not blacklisted by the “As of 2017, Malaysia’s population was ment], can I still be registered? i) Financial management 31 million, of which 22 million are from Kamaruzaman (KJ): No, you need to have Commissioner of Buildings Peninsular Malaysia. Of the 22 million, 8.5 experience in property management. Th e ii) Building and facilities e) Not found guilty by the Strata million are living in strata schemes. Th is key word is experience. That experience maintenance management Management Tribunal translates into about 40% of the population qualifi es you. f) No disciplinary action by BOVAEP in the peninsula,” Wong added, hence the rising need for professional property man- Q: One of the criteria is that one needs to 3. Letter from employer agers in the country. have experience at the managerial level. to confi rm property Th e amendment to the Valuers, Apprais- How do you defi ne managerial level? management experience ers, Estate Agents and Property Managers Act KJ: You have to display some responsibil- was passed and gazetted on Jan 2 this year. ities in terms of your work and those who Anyone who takes on the role of a property are working under you. In property man- manager is now required to register with the agement, not only are you managing the Education and minimum work experience Board of Valuers, Appraisers, Estate Agents building but those under you as well. If you qualiˎ cation for registration with BOVAEP and Property Managers (BOVAEP). Prior have some management responsibilities, DESCRIPTION CRITERIA to this, the Board was known as the Board we will review it accordingly. Qualifi cation SPM Certifi cate Diploma Other Degree Other of Valuers, Appraisers and Estate Agents diplomas degrees (BOVAEA). Th is means the Board will now Q: Does this mean that building managers Course Full Property Property management, Law and Property management, Law regulate all property managers in Malaysia. are qualifi ed to apply? discipline certifi cate management, facilities management, others facilities management, and KJ: Yes, they should be. facilities building surveying, building surveying, others Window period management, registered estate agent, registered estate agent, building quantity surveying, quantity surveying, Following the amendment to the Act, the Q: Do I have to renew the registration? surveying architecture, civil and architecture, civil and Board has opened a window period from KJ: Yes, on an annual basis. structural engineering, structural engineering, mechanical and mechanical and Jan 2 to Dec 31 this year for any person with electrical engineering electrical engineering property management experience to apply Q: Is the registration done under the ca- Minimum Eight Six years Three years Five Two years Four to be a registered property manager. Regis- pacity of an individual or a company? years of years years years tration has to be done on an individual ba- KJ: You have to register as an individual fi rst. experience sis, following which the property manager If you would like to provide the service [of can practise via approved property man- managing a building], you have to set up a agement fi rms. fi rm/company. Th at fi rm must be approved AFTER the window period Property valuation and consultancy fi rm by the Board. W M Malik & Kamaruzaman’s joint senior 1. Possess a degree qualifi cation recognised by the Board partner Kamaruzaman Jamil — who spoke Q: Is there a format for the letter from the 2. Undergo at least two years of continuous training and experience on the registration process, procedure and re- employer to confi rm the property man- under the supervision of a registered property manager quirements for property managers — stressed agement experience? that the registration procedure during this KJ: No. Basically, the onus is on you to de- 3. Submit their record of experience in a work diary and log book window period does not require a test, but clare truthfully. 4. Upon completion of the minimum two years of continuous instead acts as a verifi cation exercise of ex- working experience, the applicant will then have to sit for perienced property managers. Q: What if the employer is the property and pass the Test of Professional Competence (TPC) “To date, there are 500 applications for developer? EP 6 FRIDAY MARCH 30, 2018 • THEEDGE FINANCIAL DAILY COVER STORY

LOW YEN YEING | EdgeProp.my

KEPONG’S

Kepong’s skyline is undergoing a NEW HOMES transformation.

BY RACHEL CHEW LOW YEN YEING | EdgeProp.my He believes that the rapid development in epong sounds like a tired old place Kepong also has to do with neighbouring state at the edge of Kuala Lumpur, which of Selangor’s foreign property ownership pol- many would visit once in a while, icy. In Selangor, foreigners are only allowed to lured by its variety of Chinese restau- buy above RM2 million strata properties while in rants and food stalls — some which Kuala Lumpur, the threshold is RM1 million. Th e have been there for generations. But development plot ratio in Selangor is also much Klately, property investors and new homebuyers lower than Kuala Lumpur’s. Th is has probably are flocking to Kepong, especially to its old town. prompted developers to focus on developing new It has become one of the “hottest” areas for new projects in Kuala Lumpur. high-rise residential developments north of Kuala “Kepong lies within Kuala Lumpur and is close Lumpur city centre. to Selangor. High-end enclaves Desa ParkCity and Kepong’s new property development boom Mont’Kiara are nearby, thus making Kepong an was sparked by the announcement in mid- attractive location for both developers and home- 2016 of the Mass Rapid Transit (MRT) Sungai Kang: Kepong See: The Chin is impressed buyers,” he highlights. Buloh-Serdang-Putrajaya Line 2 and that seven has all the secondary market with the more of the 26 proposed stations along the route will factors to [in Kepong] would than 30% average New launch price benchmark be located in Kepong, namely Damansara Damai, attract fi rst-time be slow, while launch price Prices of new high-rise residences have been Sri Damansara West, Sri Damansara East, Kepong homebuyers. for higher-end growth within three trending up. Some of the units in projects that Sentral, Metro Prima, and . were introduced over 2016 and 2017 were tagged “Other than the MRT stations, Kepong and its newly completed years and during as high as RM700 psf. surrounding areas are seeing more redevelop- projects, such a market “Condominium units at Th e Henge with built- ment eff orts and new infrastructure, such as the prices may not down cycle. ups of 1,100 sq ft to 1,300 sq ft were launched completion of several new highways and road appreciate much. at just over RM400 psf. Subsequently, we saw widening projects, hypermarkets and commer- serviced apartments in United Point Residence cial hubs,” says LandServe Sdn Bhd managing with built-ups from 667 sq ft to 1,206 sq ft being director Chen King Hoaw. launched from RM555 psf. Th is was followed by “Now with Jalan Kuching and Duta-Ulu Kelang Expressway at the east, the North-South Express- way and Selayang-Kepong Highway at the west Non-landed residential projects and the Damansara-Puchong Highway at the southwest, Kepong has very good connectivity launched in Kepong since 2016 by road to , Petaling Jaya and other parts of the Klang Valley,” he tells PROJECT NAME DEVELOPEDDEVELOPED BY LAUNCHED IN PRICEPRICE PSFPSF RANGERANGE DENSITY

EdgeProp.my. Th e improved infrastructure and connectivity The Henge Kepong Aset KaKayamasyamas 2016 From RM440 1,472 units; 6.14 acres has encouraged a number of developers to build United Point Residence UOA Group August 2016 From RM550 2,509 units; 9.33 acres there. According to Metro Homes Sdn Bhd director LakePark Residences JL 99 Group August 2016 From RM520 916 units; 5.13 acres See Kok Loong, at least eight new high-rise de- Mizumi Residences Wawasan Metro Bina Sdn Bhd 2017 From RM430 1,512 units; 6 acres velopments have been launched in Kepong over the past three years such as Th e Henge Kepong by Three 33 Residence TSI GrouGroupp March 2017 RM650 to RM700 333 units; 1.46 acres Aset Kayamas Sdn Bhd, United Point Residence Fortune Centra ASIAN Pac HoldinHoldingsgs Bhd May 2017 From RM580 462 units; 2.96 acres by UOA Development Bhd, LakePark Residenc- Legend Heights JL 99 Group Oct 2017 RM450 to RM480 558 units; 2.91 acres es by JL99 Development Sdn Bhd and Fortune The Herz Aset KaKayamasyamas 2017 RM430 to RM470 329 units + 324 units Centra by Asian Pac Holdings Bhd. Rumawip; 1.52 acres “Th e new developments are mainly high-rise Lemanja Trinit Trinityy Group June 2017 From RM500 583 units; 2.78 acres due to the lack of large tracts of development land available and because of ’s East Parc @ Menjalara Fiamma HoldinHoldingg Bhd 2017 Avera Averagege RM640 432 units; 3.3 acres density policy,” notes See. Unio Residence, KL North Aikbee Development End of 2017 Avera Averagege RM600 520 units; 2.32 acres SOURCE: METRO HOMES, LANDSERVE AND EDGEPROP.MY FRIDAY MARCH 30, 2018 • THEEDGE FINANCIAL DAILY EP 7 COVER STORY

East Parc @ Menjalara off ering serviced apart- Average transaction price psf (RM) Jaya, that would be the price they’d have to pay,” ments of 600 sq ft to 1,522 sq ft from RM708 psf. he says. “Generally, the unit size is becoming smaller of Kepong’s existing non-landed projects After all, RM700 psf and above is quite the while the price psf is getting higher. Of course, 400 SOURCE: EDGEPROP.MY norm for new launches of high-rise residential Price psf (RM) there are also other factors that contribute to 350 developments in Kuala Lumpur and Petaling Jaya. the developer prices,” LandServe’s Chen shares. 356 With the proposed MRT stations in the Kepong According to Yit Seng Realty team leader Alan 300 327 area, Chen believes homebuyers and investors Chin, who is a Kepong specialist, existing high- 250 294 294 302 from adjoining neighbourhoods will be attracted rise projects are very limited in Kepong and are 200 to invest in this area. usually in the price range of RM200 psf to RM300 150 “Given time, the take-up would be good. We psf while the launch prices of new units have gone do not foresee any bubble,” he notes. up to RM750 psf to RM800 psf,” he says, adding 100 Yit Seng’s Chin wholly agrees with Chen that that the new projects are defi nitely on the higher 50 Kepong’s new residential projects are well sup- end and off er more lifestyle living. 0 ported by local buyers. “There were no lifestyle elements in past 2013 2014 2015 2016 2017 “Kepong is an old town but in the last 10 years, high-rise projects in Kepong old town. The first the younger generation in the vicinity is demand- lifestyle high-rise residential project launched HARIS HASSAN/THE EDGE ing more high-end homes. Many of them want to in Kepong old town was The Henge about two stay close to their parents but in a fancier home. years ago. It was the first residential high-rise Do you know? Th e strong demand for modern high-rise devel- with full-fledged condominium facilities, and opments with full facilities explains the strong such projects can only be found in the newer take-up and rapid growth of new projects in Ke- parts of Kepong such as and pong,” he shares. Desa ParkCity. Chin says that most of the projects have “Th e recent condominium launches were only achieved 70% to 90% take-up rates, and easily seen from two to three years ago. However, with 80% of the buyers are locals. Yit Seng Realty is more than 30% average launch price growth in There are seven MRT among the appointed agents for some of these such a short period and during a down cycle, I stations on MRT JINJANG new projects. think it is impressive,” adds Chin. Line 2 in Kepong “Kepong is located 10km to 15km away from However, Metro Homes’ See notes that prices Kuala Lumpur city cente but the new project sell- of new property launches have stabilised, con- ing price psf is only half of those in the city centre sidering the current slow market especially for KEPONG and of the neighbouring Mont’Kiara. It is also a METRO BARU high-density projects. PRIMA very matured area, so Kepong has all the factors According to him, the average selling price to attract fi rst-time homebuyers,” he notes. for new high-rise homes in Kepong is about Taman Chin and Kong both believe the market is able Desa Jaya, Kepong Bukit RM450 psf to RM500 psf for built-up sizes of 800 to take in the current selling price benchmark for sq ft to 900 sq ft with the absolute price between high-rise residential projects in Kepong. Taman SRI Chen: Generally, RM400,000 and RM500,000. Ehsan KEPONG “Th e take-up rate tells the truth. I think the mar- “Yes, I believe buyers can absorb new property DAMANSARA the unit size ket is comfortable with anything that is selling in SENTRAL EAST launches at this price range and built-up sizes. [in Kepong] between RM500 psf and RM800 psf for now. Th e However, I foresee take-up rates of new launch Bandar Sri is becoming projects won’t be selling so fast and be so well-re- properties to be slow in the fi rst half of 2018 and Taman SRI Damansara smaller while ceived otherwise. I also expect the completion of Perindustrian DAMANSARA will only pick up in the second half,” he says. KIP the price psf is MRT Line 2, which is expected to be by 2022, to So far, new high-rise home launches in Kepong WEST boost prices further,” Kong says. getting higher. have been well received, according to Yit Seng Sierramas Realty team leader Joe Kong. DAMANSARA Promising outlook “From our observation, many new high-rise DAMAI As thousands of new high-rise homes are being launches in Kepong were sold out within a year built, is there a concern about oversupply? after launch. For example, the most expensive Kong is not worried. “What will not change is new launch, Unio Residence, KL North — with The price benchmark New non-landed the location of Kepong. It is a very attractive and selling price as high as above RM1 million — is of new non-landed residential projects convenient area to live and stay in. Th e MRT Line 90% sold with the average selling price of RM600 residences is around: have received 70% 2 will be bringing in more traffi c. I also foresee psf. Th e leftovers were all loan-rejected units. to 90% take-up people from neighbouring areas — for example, All of the big units of 1,400 sq ft were sold. Th e RM700 psf Selayang — to move into Kepong because of the project was just launched at the end of last year,” (as of end 2017) MRT,” he says. Kong says, adding that he is confi dent that new LandServe’s Chen expects the older projects projects in Kepong will continue to do well in and landed homes to benefi t from the prices of the near future. the new projects. “Our records show that these properties have Strong buying power continued to enjoy steady growth in prices in LandServe’s Chen also expects Kepong’s overall recent years, with the exception of some apart- property market outlook to be positive for both ments and condominiums. We expect this trend primary and secondary markets. 80% to continue. “Generally speaking, Kepong folks have strong of buyers of “Of course, in order for prices of stratifi ed devel- property buying power. Th e locals would have new non- opments such as condominiums and apartments already accepted the fact that in order to own a landed homes to go up, they must be managed and maintained new home within a new modern development are locals properly. Otherwise, their prices can never be close to the Kuala Lumpur city centre or Petaling sustained and are destined to go down,” he con- cludes. LOW YEN YEING | EdgeProp.my Nonetheless, Metro Homes’ See is more cau- tious about the outlook of Kepong’s property market, especially the secondary market. “Th e secondary market would be slow, while for higher-end newly completed projects, prices may not appreciate much. Yield may be too low to cover loan instalments,” he off ers. He adds that demand for homes on the second- ary market could be aff ected as more new homes enter into the market over the next few years. He also foresees the rental market for these new units to be very competitive due to the large volume of new supply fl owing into the market. One of the MRT Besides, he points out that uncertainties pre- stations that is vail, which may aff ect the general property mar- coming up in the ket, such as the upcoming Malaysian general area, across the elections, the economy, the potential of another road from the interest rate hike by the central bank and the lo- upcoming Unio cal authority’s poor development planning and Residence, KL approval of more green areas for developments North. with high density.