A Bold Decade Commemorated with Art + Architecture Auction

JULY - SEPTEMBER 2019

A BOLD DECADE COMMEMORATED WITH ART + ARCHITECTURE AUCTION

PLUS Value Map Virtual or Reality: An Astute Strategy A Steady Pace for the HOC 2019 - Puchong Life in A Token Rewarded Industry in Kuala Lumpur A Boon Thus West World KDN PP18893/11/2015(034373) and Selangor in 1H 2019 Far

It’s A Buyer’s Market – Best Time To Buy and Collect!

Tribute To Jeri Azhari” received good response and feedback from the visitors. It was officiated by Tan Sri Azman Hashim at 8pm on 8 July 2019.

In the upcoming show, we have Yusof Ghani’s Segerak VIII: Utopia which will be officiated by His Royal Highness Sultan Nazrin Shah, the Ruler of the Perak state, and Tuanku Zara Salim, DYMM Raja Permaisuri of Perak, at With the Guest of Honour Tan Sri Azman Hashim (middle) on the opening night of “A Tribute To Jeri 8:30pm on 8 August 2019. Azhari” are Henry Butcher Art Auctioneers Directors Lim Eng Chong (in white), Datuk Vincent Sim and spouse (in black), and Sim Polenn. This coming October, HBAA will Henry Butcher Art Auctioneers when the art market was strong, at RM8 have a big booth in the prestigious (HBAA) achieved RM3.2 million million. It is extremely likely and possible, international art fair Art Expo Malaysia sales of artworks in the 30 June 2019 that the total auction sale this year will 2019 (11-13 October 2019) at the art auction, with some 300 people exceed RM8 million, especially timely Matrade Exhibition and Convention attending on auction day. From the as it is our company’s 10th anniversary. Centre (MECC) Kuala Lumpur, 200 Lots available, 150 Lots (75%) were We would like to take this opportunity to showcasing some of the Auction’s successfully sold. Compared to the sincerely thank each and every one of (3 November) highlight pieces. 65 March 2019 auction, sales increased by you, the supporters of HBAA - THANK YOU reputable art exhibitors from 22 RM430,000, registering a growth of 16%. VERY MUCH to the collectors, buyers, countries will be exhibiting some 1,500 With the next auction taking place on 3 consignors, artists, bidders, media pieces of quality artworks under one November 2019 at the same venue in friends, colleagues, partners, and art roof. We look forward to welcoming Galeri Prima, it is anticipated that the lovers, for the continuous support! and greeting you. See you in the total auction sales for 2019 will reach a coming events! new peak. The company’s highest art Curate Henry Butcher’s (HBAA auction sales (on a yearly basis) in the gallery arm) ongoing exhibition (in Sim Polenn past 10 years was recorded in year 2012 collaboration with Galeri Prima) of “A Henry Butcher Art Auctioneers

Off Jalan Dang Wangi, com.my ART EDITION 2019 50300 Kuala Lumpur T: 603-2694 2212 Plant & Machinery Consultancy E: [email protected] T: 603-2694 2212 F 603-2694 3484 W: www.henrybutcher.com.my E: hbmalaysia_pnm@henrybutcher. Front Cover: Xenobiosis (1969) by Datuk Ibrahim Hussein ART INVESTMENT Mixed media on canvas, 135cm x 90cm. Estimate, RM300,000-RM550,000. At the Henry Butcher Art Auctioneers 10th Anniversary Special Edition: com.my FOR EVERYONE Art + Architecture Auction, 30 June 2019. OUR SERVICES

PLUS Art Imitates Life at Malaysia on Right Track KL New Launches Value Map LIMA Charity Gala to Reduce Residential 2017 vs 2018 Puchong East Valuation Auctions & Tender Sales KDN PP18893/11/2015(034373) 2019 Property Overhang? T: 603-2694 2212 F 603-2694 3484 T: 603-2694 2212 F 603-2694 1292 E: [email protected] E: [email protected] Printed by Percetakan CL Wong Sdn Bhd Project Marketing Art Consultancy AS-84, Jalan Hang Tuah 4, T: 603-2694 2212 F 603-2692 5771 T: 603-2691 3089 F 603-2602 1523 Taman Salak Selatan, Cheras, E: [email protected] E: [email protected] 57100 Kuala Lumpur.

JULY - SEPTEMBER 2019 HERALD 1 Datuk Syed Ahmad Jamal’s islamic-inspired Hijrah enroute to its record feat. Art + Architecture Auction Marks 10th Anniversary for Henry Butcher Art Auctioneers The Auction, on 30 June 2019 at Galeri Prima in Kuala Lumpur, was held in conjunction with the Kuala Lumpur Architecture Festival 2019.

The 10th Anniversary of the Henry Datuk Ibrahim’s Dark Voices also from painted in 1999 rounded up the top Butcher Art Auction was celebrated with 1969 was sold at RM134,400. three at the inaugural collaboration a special auction in a collaborative with PAM by achieving RM268,800 after effort (for artworks with architectural The top spot was locked in at bidding commenced at RM200,000. content) with Pertubuhan Akitek RM313,600 by Datuk Syed Ahmad Malaysia or more commonly known Jamal’s islamic-inspired Hijrah which Two of Yusof Ghani’s pieces were as PAM. Masterpieces from renowned was exhibited at Galeri Petronas in caught in a bidding frenzy namely Biring artists such as Datuk Ibrahim Hussein, year 2000. The National Laureate (undated) which closed at RM35,840, Datuk Syed Ahmad Jamal, Yusof Datuk Syed Ahmad Jamal’s Mimpi and Topeng (1996) sold at RM22,400. Ghani, Khalil Ibrahim, Suzlee Ibrahim (1999) also occupied the top rung But it was the artist’s Siri Tari (1991-1992) as well as award winning music earlier in March this year at RM246,400. that stole the show by concluding at composer Dato’ M. Nasir and Past Abdul Latiff Mohidin’s Dark Bakau RM106,400. President of PAM Lee Chor Wah, were among the 200 lots consigned for the special day.

The commemorative event to mark the decade long presence of Henry Butcher Art Auction attracted collectors of all ages and creed including familiar faces and novices who have all come to immerse in the artful play of imagination and colours.

Headlining the auction this time was a rare work from 1969 dubbed Xenobiosis by Datuk Ibrahim Hussein. It went home at RM291,200, placing it as the second Abdul Latiff Mohidin’s Dark Bakau was among Tay Bak Koi’s Untitled piece experienced an most valuable artwork sold that day. the top pieces at the Art + Architecture Auction. interesting bidding action.

2 HERALD JULY - SEPTEMBER 2019 The late Tay Bak Koi’s Untitled (1990) also enjoyed active exchange from the floor starting at RM50,000 before going home at RM100,800. Other equally intense bids were Dr. S. Chanthiran’s Root and Wings Series (2012) which concluded at RM61,600 from the initial bid of RM15,000, and Samsudin Wahab’s Self- Portrait As General (Let It Be) (2009) selling at RM33,600 or exceeding four times its initial bidding value of RM8,000.

Awang Damit’s popular E.O.C (Essence Of Culture) Series was sold for RM67,200 while an Untitled (1990) yet colourful facade depiction of a straits settlement by Redza Piyadasa achieved RM61,600. (Widow of the late artist Jery Azhari) Puan Sita explaining the artworks on the opening night of “A All five of Zulkifli Yusoff’s artworks were Tribute to Jeri Azhari” to Guest of Honour Tan Sri Azman Hashim and Sim Polenn. also successfully sold off. About 300 people attended the Art + The exciting back-to-back showcase Architecture Auction that witnessed paves the way for the next Henry 150 Lots sold out of the 200 available Butcher Art Auction scheduled on 3 recording RM3.2 million in value. November 2019. It is almost certain that this 10th year may just conclude Interest in art then continues for in perfect harmony given that the Curate Henry Butcher (Henry Butcher auctions this year have bucked the Art Auctioneers’ gallery arm) from trend in a totally unrelenting manner 8 to 26 July 2019 at Galeri Prima to especially when measured against commemorate the late Jeri Azhari. the challenging climate of the global Guest of Honour Tan Sri Azman Hashim economy. officiated the exhibition. For the complete e-catalogue and results of Art + Architecture Auction including past auctions’ top performers, logon to www.hbart.com.my.

Fetching four times more than its original Dark Voices, a rare piece by Datuk Ibrahim bidding price was Dr. S. Chanthiran’s Root and Hussein painted in 1969. Wings Series (2012).

Fetching a decent value at the Art + Architecture Auction was Awang Damit’s E.O.C (Essence Of Culture) Series.

Seduction (1990) by Jeri Azhari exhibited at “A Tribute to Jeri Azhari”.

JULY - SEPTEMBER 2019 HERALD 3 An Astute Strategy Rewarded Henry Butcher Malaysia (Mont Kiara) Sdn Bhd (HBMMK), the asset and facility management arm of Henry Butcher Group clinched three awards at the Malaysia’s Best Managed Property Awards 2019 by EdgeProp.

ensure the inspection was carried out methodically according to the books. As he kept an eye on the structure, this “resident-engineer” also refrained from sending a bill to his fellow neighbours and the JMB (Joint Management Body), preferring instead to do his part as a Sri Penaga citizen.

“A lot of professionals live there and everyone chips in,” said Hon Keong of the distinct camaraderie at Sri Penaga.

The Pearl @ KLCC ● KATO Manufacturing (Malaysia) Sdn company to participate in the Awards, As one of the pioneer luxury Bhd, Above 10 Years, Specialised which largely stemmed from the condominiums along Jalan Stonor, The Category latter’s highly disciplined nature. But Pearl @ KLCC is mostly owned by investors. ● Sri Penaga Condominium, Edge- before HBMMK’s appointment, KATO’s Good maintenance hence becomes a Prop-ILAM Malaysia’s Sustainable strict posture was first tasted through valuable commodity to attract would-be Landscape Award, Silver its meticulous site visits to HBMMK- tenants for such “invested assets”. But the ● The Pearl @ KLCC, Below 10 Years, managed projects. So what culminated challenge does not lie in maintenance Multi-Own Strata Residential, Bronze to HBMMK’s appointment to manage alone, The Pearl @ KLCC has to also a purpose-built premises operating compete with newer luxury residences throughout the year with only several nearby. The winnings marked an annual return compelled-off-days? to the stage by HBMMK, led by its Relating the experience of submitting Executive Director Low Hon Keong. The Hon Keong confessed to a multi-factor the award entry, Hon Keong recalled remarkable teamwork supported by its reason from HBMMK’s experience the intimate relationship HBMMK has clinical strategy has been singled out as a company, clientele portfolio, with the developer. From the get-go, as the key to this year’s success. performance, staff strength, the they charted the course together to leadership and more. One could say it map out the best foot forward. This “We take this as an opportunity for is the dynamism of HBMMK that led to includes everything from maintenance them to come and audit our sites,” its appointment. to the overall uplifting of its image; every responded Hon Keong when asked possible step was weighted fairly before about his thoughts on the Awards. Sri Penaga Condominium they were implemented or discarded He cited that regular maintenance The long-standing prominent landmark from the plan altogether. But one of is crucial as it paves the way for long in the affluent Bangsar began its the better decisions made was the term sustainability. Such awareness he relationship with HBMMK in 2012 and renovation of the lift lobby to rejuvenate said is today buoyed by the society’s observing Sri Penaga today as both the welcoming atmosphere for existing maturing mindset where more are a property manager and a service residents as well as incoming guests and now accustomed to the value of provider with a long list of similar clientele friends. Needless to say, the Award is a better upkeep as it contributes to the in the business, Hon Keong disclosed testament to the well thought-out plan. properties and those who reside in that most important factor that sets them. this classic luxury condominium apart Moving forward, HBMMK strives to go from the rest is the committed lot of further and add more projects to its Taking pride in the achievement, Hon passionate and rather selfless owners stable including purpose-built premises Keong took the time to immerse into and residents. like the government complexes in every award and what they represent Putrajaya. This is further complemented to the Group. A case in point was how a renowned by its dedicated in-house team engineer, already in his 70’s, inspected comprising of seasoned hands from all KATO Manufacturing (Malaysia) Sdn the structural fitness of the building aspects of the business encompassing Bhd given the sloped terrain that it sits on. technical, operations, accounting, Hon Keong confessed to taking more Because of his professional experience, customer service, administration and than a year to convince the Japanese he attended to the matter daily to astute leadership at the top.

4 HERALD JULY - SEPTEMBER 2019 HOC 2019 - A Boon Thus Far numbers since 2006 according to NAPIC’s statistics.

Where HOC 2019 will lead to is yet to be known as the parameters have now been shifted to include the secondary market. Will the RM3 billion target be recalibrated in tandem or will there continue to be more discounts, freebies and incentives offered by the developers

Image courtesy of BH Online. and even secondary home owners to Prime Minister Malaysia YAB Tun Dr. Mahathir Mohamad at the launch of the Home Ownership the buyers? That remains to be seen. But Campaign in March earlier this year. thus far, we are of the view that most of According to NAPIC’s (National Bhd also lauded HOC 2019 as the the purchases may have already been Property Information Centre) report, contributing factor that led to a total concluded by 30 June 2019 with the rest the number of unsold residential sales of RM1.026 billion in the first seven of the year chalking up moderate pace properties had risen to 32,936 in the months of 2019 (EdgeProp, 27 June of sales. first quarter of 2019 valued at RM19.96 2019). Meanwhile, LBS Bina Group Bhd billion, up from 32,313 units valued at recommended an extension of the Moving forward, Malaysia has always RM19.86 billion as at the fourth quarter campaign on the back of securing been and shall remain an active player of 2018. The continued rise in the unsold RM290 million sales between May and in the global market. Any outcome stock is however countered with an June 2019 (EdgeProp, 28 June 2019). arising from the trade war between increase of 0.6% in transactions volume Though profits are slightly diminished the US and China will impact the and a rise of 0.3% in transactions value seeing the units offered are discounted housing industry. As such, the friendly in 2018 compared to the year before. by about 10% to 20%, developers have demeanour between the two countries Couple this with the foreseeable so far been pleased with the market recently may serve as only a temporary increase in property purchases during movement. reprieve to the widespread slowdown of the Home Ownership Campaign 2019 the world economy. (HOC 2019), which has now been Looking back at HOC 2019’s initial extended to the end of 2019 from its objective, REHDA was optimistic Another contributing factor is the original expiry of June 2019 as well as about reaching a sales of RM3 billion domestic political environment where the widening of the net to also extend despite market observers and analysts if Pakatan Harapan can continue to the Campaign incentives to buyers preferring a more “realistic” stand given run the country without any “shocks” in the secondary market, it could the market climate notwithstanding to the investing community, it shall signal a resurgence of the market with the trade war tensions between the bode well for property market. After all, probably a flattish performance in 2019 US and China although the two giants unlike the more volatile markets of compared to the years prior to this. were seen to be cordial recently. Hong Kong and Singapore, prices of Malaysian properties move only within Public reception of the HOC2019 Other contributing factors include the a tight range at any one time. And so, as reported in the media has been slight decrease of new stock; in terms with the HOC 2019 spurring interests positive so far, with the rakyat eager of units offered - 66,040 units in 2018, among first time home buyers, we may to use the campaign as a means to dropping 14.9% from 77,570 units in see NAPIC’s statistics bucking the trend own a place they can call their own. 2017, and construction activity slowed even if the average transaction prices In conjunction with the launch of by 0.7% to 93,547 units in 2018 against decline against a rise in transaction the HOC 2019 in March this year, the 94,198 units in 2017. The numbers volume. But if the banks can begin to three-day MAPEX (Malaysia Property reflect the reality on the ground and relax their lending criteria from here Expo) saw 496 properties worth RM285 HOC 2019’s entry into the market onwards, it will certainly provide a real million booked (NST, 28 March 2019). could not have been more timely to boost to HOC 2019 and we can expect Subsequent campaigns at a smaller revive the lacklustre market which to see more transactions concluding scale were organised nationwide to otherwise has experienced depressed before the year ends. encourage the same cause. House Price Stamp Duty Exemption Exemption Period Developers have been positive about the campaign as well. Sime Darby Up to RM300,000 Memorandum of Transfer For Sale and Purchase Property Sdn Bhd reportedly sold over and Loan Agreement Agreement completed from 1 January 2019 until 1,100 units by April 30 in their Primetime 31 December 2020 8 Marketing Campaign, and sought to replicate its success by running Between Memorandum of Transfer For Sale and Purchase another campaign coinciding with RM300,001 and and Loan Agreement Agreement completed the Raya season which ended on 30 RM500,000 (exemption is limited to from 1 July 2019 until 31 June (The Star Online, 6 May 2019). the first RM300,000 of the December 2020 Eco World Development Group house’s price)

JULY - SEPTEMBER 2019 HERALD 5 A Steady Pace for the

Kuala Lumpur and Selangor 1H 2019 review. Industry By Henry Butcher Research

KUALA LUMPUR JALAN KUCHING It has been a little over a year since Pakatan Rakyat took over the reins, Highrise RM550 - SETAPAK ending the six-decade streak of the 1 RM650psf TMN MELAWATI previous Barisan Nasional government. PROJECT Highrise RM400 - Highrise With new faces in office means a new 1 RM500 RM500 - philosophy in administration and PROJECT psf 2 RM1000 PROJECTS psf government, which will take time for the population to adapt to. Combined WANGSA MAJU with the current geopolitical and Highrise global economic climate, it looks RM500 - like developers are taking this time to 1 RM600 step back and evaluate the situation, PROJECT psf with fewer units launched in the first half of 2019 (1H 2019) compared to the corresponding period in 2018 (1H 2018). However, with the recent extension of the Home Ownership Campaign 2019 (HOC 2019), it might just be the antidote the players need. D’SARA HEIGHTS Highrise BUKIT BINTANG RM800 - Looking at the overall numbers, 1H 2019 1 RM1000 Highrise had lesser new property launches in PROJECT psf RM1500 - 1 RM1600 Kuala Lumpur and Selangor compared PROJECT psf to the previous year. Whereas 1H 2018 had a total of 52 launches, 1H 2019 PANTAI DALAM recorded 50 - a 4% reduction. However, Highrise we observed a significant drop in RM300 - 1 RM350 total units offered - 18,305 in 1H 2019 PROJECT psf compared to 21,854 units in 1H 2018, yielding a gap of 3,549 units, or 16.2%. SEPUTEH

Highrise Of the 50 new launches in 1H 2019, RM1300 - 1 RM1500 37 (72%) of them were in Selangor. PROJECT psf This echoes a similar trend in 1H 2018 albeit at a lower percentage of new launches (58%, 30 projects) in

BANDAR SRI Selangor. In 1H 2019, Selangor edges PERMAISURI out Kuala Lumpur ever so slightly, with JLN KLANG LAMA Highrise 9,574 units offered (52%) but in 1H 2018, Highrise RM500 - Kuala Lumpur was ahead with 11,979 RM600 RM530 - 1 units (55%). 1 RM580 PROJECTS psf PROJECT psf BUKIT JALIL In 1H 2018, it was rather easy to see SRI PETALING Highrise a slow down in activity as developers RM750 - Highrise 2 RM1000 or the industry braced for the 14th RM650 - PROJECTS psf 1 RM800 General Election impact. There was PROJECT psf marked activity from January to March with March registering 12 launches. Things however slowed down in April Number of New Number of Units Launched and May 2018, with 6 and 2 launches Project Launches in New Projects respectively. Once the post-election 1H 2018 1H 2019 1H 2018 1H 2019 dust settled, June sprung back to action with 15 launches. Projects 52 50 Units 21,854 18,305

8 HERALD JULY - SEPTEMBER 2019 Young working adults and families RAWANG seem to be the target market for the Landed SELANGOR property scene too with developers RM450 - offering decently-sized units for them to 1 RM600psf SHAH ALAM SUNGAI BULOH PROJECT call their first home. Of the 50 projects Highrise Landed launched in 1H 2019, 21 projects offer RM500 - RM300 - SERENDAH sizes between 800 to 1,000 sq ft, making 4 RM600psf 1 RM700psf PROJECTS PROJECT Landed Landed up the second largest share at 42% of RM200 - RM350 - the total units launched. 1 RM300psf RM600psf PROJECT PUNCAK ALAM The biggest share goes to Landed developments exceeding 2,000 sq ft RM350 - BANDAR UTAMA 1 RM500psf per unit, with 23 (46%) projects offering PROJECT Highrise such spacious configurations. A similar RM800 - SETIA ALAM 1 RM900psf trend was detected in 1H 2018, with 28 PROJECT projects (out of 52) offering units within Landed RM350 - this range, edged out only by the 800 to 3 RM900psf 1,000 sq ft category. PROJECTS

KLANG Geographically, Shah Alam and Klang Highrise dominated the launches in 1H 2019 (4 RM450 - each), followed by Sungai Buloh, Setia CHERAS 4 RM800psf Alam, and Kota Kemuning (3 each). PROJECTS Landed Highrise Setia Alam nevertheless emerged as RM300 - RM450 - the favourite “launching pad” for the RM400psf 2 RM700psf PROJECTS first half of both years with a combined KOTA KEMUNING 8 new launches altogether. BANGI Highrise RM130 - Landed Pricing-wise, 60% of the properties 2 RM250psf RM300 - PROJECTS (30) launched in 1H 2019 were priced Landed 2 RM550psf RM500 - SUBANG JAYA PROJECTS between RM501 to RM750 per sq ft. RM600psf Highrise RM600 - In Kuala Lumpur, such projects are 2 RM950psf KAJANG located in: PROJECTS Highrise ● Setapak (1 high-rise, RM400 to RM450 - RM500 per sq ft); PUCHONG 2 RM550psf PROJECTS ● Bandar Sri Permaisuri and Wangsa Highrise Landed RM400 - CYBERJAYA RM600 - Maju (1 high-rise each, RM500 to 2 RM600psf RM700psf RM600 per sq ft); PROJECTS Landed DENGKIL Landed RM350 - ● Jalan Klang Lama (1 high-rise, RM650 - SEPANG 2 RM700psf Landed RM800psf PROJECTS SEMENYIH RM530 to RM580 per sq ft); and RM350 - Highrise ● Jalan Kuching (1 high-rise, RM550 to 1 RM800psf RM450 - Landed PROJECT 2 RM550psf RM300 - RM650 per sq ft). PROJECTS Landed 1 RM400psf In comparison, developers started RM300 - PROJECT strong in 1H 2019 with March and RM400psf April the most active with 16 and 12 launches respectively but June tapered Types of Projects to only 3 launches. Developers could 20 19 2018 2019 be leveraging on the opportunity that 17 HOC 2019 offered. 16 15 With a slowly-decreasing amount of 15 land available for development, high- rises have progressively become the 10 property of choice in Kuala Lumpur and 10 9 Selangor. Based on the data, there was 7 an abundance of serviced residences/ 5 apartments launches throughout both 5 periods (19 in 1H 2018; 17 in 1H 2019), 2 2 2 followed by terraces and superlinks 1 1 1 (16 in 1H 2018; 17 in 1H 2019), and 0 condominiums (10 in 1H 2018; 9 in 1H /

2019). Of the total launched in 1H 2019 Semi-D Bungalow Bungalow

(18,305), a staggering 83% (15,225 Sovo/Soso Townhouse Soho/Sofo/ Soho/Sofo/

units) were high-rises. Condominium Apartment/Flat Terrace/Super Link Terrace/Super Serviced Apartment Serviced Residence

JULY - SEPTEMBER 2019 HERALD 9 Unit Sizes Pricing Price Per by Projects by Projects Square Feet (PSF)

9% Below 600sf 12% 15% Below 20% 25 Below 25 RM400,000 RM500

25% 601sf - 800sf 24% 56% RM401,000 42% 28 RM501 30 - RM600,000 - RM750 54% 801sf - 1,000sf 42%

RM601,000 RM751 60% 48% 15 10 33% 1,001sf - 1,200sf 21% - RM800,000 - RM1000

31% 1,201sf - 1,500sf 24% RM801,000 RM1,001 48% - RM1,000,000 44% 3 - RM1,500 2

25% 1,501sf - 1,800sf 22%

Above Above 44% RM1,000,000 68% 2 RM1,500 3 9% 1,801sf - 2,000sf 18%

29% Above 2,000sf 46%

In Selangor, similarly priced projects Location are in: Setia Alam 5 ● Kajang (1 landed, RM600 to RM700 4 Shah Alam Rawang 3 4 Klang per sq ft); and Puchong 3 3 Setia Alam ● Petaling Jaya 3 Kota Kemuning and Shah Alam (1 3 Sungai Buloh Cheras 3 landed each, RM500 to RM600 per 2 Bangi Cyberjaya 2 Sepang sq ft). Sepang 2 2 Mont Kiara 2 2 Puchong For those set on value buys, there are Setapak 2 2 Kajang 25 projects (50%) with homes priced OUG 2 2 Cheras Klang 2 2 Subang Jaya below RM500 per sq ft, mostly located Bukit Jalil 1 2 Cyberjaya in Selangor. Ara Damansara 1 2 Bukit Jalil Shah Alam 1 Taman Melawati Damansara Heights 1 2 On the other end of the spectrum, Segambut 1 2 Kota Kemuning properties placed in hotspots Dutamas 1 1 Serendah commanded significantly higher asking Ampang 1 1 Sri Petaling prices, the highest being in Bukit Bintang Jalan Kuching 1 1 Jalan Kuching Taman Desa 1 1 Dengkil (1 high-rise, RM1,500 to RM1,600 per sq Kajang 1 1 Damansara Heights ft), followed by Seputeh (1 high-rise, Bukit Bintang 1 1 Puncak Alam RM1,300 to RM1,500 per sq ft), Taman Alam Damai 1 1 Setapak Melawati (1 high-rise, RM500 to RM1,000 Semenyih 1 Kota Kemuning 1 1 Rawang per sq ft) and Damansara Heights (1 Seri Kembangan 1 1 Bukit Bintang high-rise, RM800 to RM1,000 per sq ft) Bandar Mahkota Cheras 1 1 Semenyih where the latter used to be among the City Centre 1 1 Bandar Utama Bandar Sri Permaisuri 1 most elite in the country. 1 Jalan Klang Lama Sungai Buloh 1 1 Wangsa Maju Bandar Sunway 1 Seputeh Wangsa Maju 1 1 Bangsar South 1 1 Bandar Sri Permaisuri Putrajaya 1 1 Pantai Dalam

2018 2019

10 HERALD JULY - SEPTEMBER 2019 Desa Impian LDP TAMAN SRI PUCHONG Puchong LDP Intan Permata 2 KAMPUNG Aviary TUN RAZAK

Seroja

PUCHONG LDP PERMATA 2 Permai Puchong Court Permata TAMAN 1 Taman Puchong PERINDUSTRIAN ANGGERIK Indah PUSAT BANDAR PUCHONG Permai TAMAN DAHLIA Villa KAMPUNG TAMAN SERI ANDALAS PUCHONG Taman Taman PERDANA Hillcrest Taman Puchong Puchong Height Puchong Perdana

Prima Permai LDP

Desa Vista Millennium Idaman TAMAN PUCHONG PRIMA Aurora

DESA IMPIANA Vistaria

Desa Lily Impiana KAMPUNG SERI AMAN TENGAH Puchong Utama *Elevia Court 1

Aman Seri PUCHONG Markisa UTAMA COURT 1 TAMAN TASIK PRIMA Puchong Seri Elina Utama *280 Akasia Court 2 Parkhomes The Wharf

LEGEND Seri Pelangi Taman Price RM(psf) Puchong Utama Under Construction Below 200 201 - 300 301 - 400 401- 500

QUICK STATS

Completed 501 - 600 601 - 700 701 - 800 Above 800 Built Up (SF) Price (RM PSF) Maximum 3,035 700 Minimum 538 120 * = Asking Price Median 871 262 Value Map Puchong West Pockets of affordable projects, coexisting with the latest and greatest.

JULY - SEPTEMBER 2019 HERALD 9 From its origins as an orang asli Completed (Built-Up, sq ft) settlement in the 1900’s to a tin mining landmark and now to a prominent Completion Project Minimum Maximum town in the Klang Valley, suffice to Date say that the story of Puchong is *280 Parkhomes Condominium 2,530 3,035 2015 one of accelerated growth and modernisation, rapidly evolving to Aman Apartment 650 _ 2000's cater to the needs of the times. What Aurora Residence 1,411 _ 2017 was once a settlement is now a well- Desa Idaman Residences 958 1,027 2010 connected urban hotspot, with many opportunities for both work and play. It Desa Impiana Condominium 1,044 1,864 2007 is no wonder that many have chosen Desa Impian Apartment 883 1,324 2000's to call Puchong home. Elina Apartment 635 646 2000's *Elevia Residences 859 1,270 2017 As a refresher, Puchong covers an area of approximately 51.71km2, Intan Apartment 1,047 1,117 2000's and is under the jurisdiction of four Lily Apartment 650 _ 2000's local authorities: Kuala Lumpur City Permai Court 753 _ 2000's Hall (DBKL), Subang Jaya Municipal Council (MPSJ), Sepang Municipal Permai Villa Condominium 941 969 2000's Council (MP Sepang), and Kuala Puchong Permata 1 Apartment 850 _ 2000's Langat District Council (MDKL). Puchong Permata 2 Flat 646 _ 2000's Puchong Utama Court 1 785 _ 2000's Our previous article covered the eastern side of Puchong, Puchong Puchong Utama Court 2 753 _ 2000's East. In this final installment, we are Seri Markisa Apartment 650 657 2000's covering the western side of Puchong, Seri Pelangi Flat 657 _ 2000's Puchong West. Seroja Apartment 667 _ 2000's Puchong West lies west of the Taman Puchong Indah Flat 645 _ 2000's Damansara-Puchong Expressway, and Taman Puchong Perdana Flat 538 560 2000's is flanked by the Klang River. It includes Taman Puchong Permai Flat 581 968 2000's areas like Taman Puchong Utama, Taman Puchong Prima, Puchong Taman Puchong Prima 645 807 2000's Permata 1 and 2, with The Wharf and Apartment Taman Tasik Prima at the southernmost The Wharf Residences 707 1,173 2014 corner. In terms of administration, it is Vista Millenium Condominium 840 1,001 2000's under the jurisdiction of MPSJ. Vistaria Apartment 810 _ 2000's Courtesy of the recent LRT Extension Project (LEP), Puchong is now easily Under Construction (Built-Up, sq ft) connected to other Klang Valley hotspots, with stations as part of the Completion Project Minimum Maximum Kelana Jaya LRT line, in Kinrara BK 5, IOI Date Puchong Jaya Pusat Bandar Puchong, Aviary Residences 753 1,076 2022 Taman Perindustrian Puchong, Bandar Puteri, Puchong Perdana and Puchong Hillcrest Height 1,011 1,367 2021 Prima. Seri Akasia (RKSU) 900 1,126 2020 Taman Puchong Utama (RSKU) 750 1,000 2019 Aside from that, the MRT Sungai Buloh- Kajang line (MRT SBK) has stations in Bandar Puteri and Pusat Bandar Puchong, and the second MRT line, In terms of built-up area, properties Impian Apartment). However, as we which connects Serdang, Sungai in Puchong West offer a wide range approached the 2010’s, we observed Buloh, and Putrajaya (MRT SSP) will see of configurations. Most offerings by an increase in its built-up. From 2007’s another station (16 Sierra) built. developers have a built-up area of Desa Impiana Condominium (1,044 less than 1,000 sq ft mark, the smallest to 1,864 sq ft), we noted that living Whereas Puchong East saw its being Taman Puchong Perdana Flat, spaces in more recent projects were development and growth kicking off a project built during the 2000’s. Its getting larger, with more diverse in the 1990’s, Puchong West started smallest configuration stands at 538 permutations as well. during the 2000’s, comprising a sq ft, and its largest configuration at diverse assortment of high-rises, from only 560 sq ft. That being said, only a handful apartments to flats and condominiums. of projects in Puchong West have It hasn’t wavered from its trajectory, with The initial projects in Puchong West developments that surpass 2,000 sq ft. the most recent completed properties in the 2000’s offered units sized The largest we have observed belongs being high-rises purpose built to meet between 538 sq ft (Taman Puchong to 280 Parkhomes Condominium the needs of the urban middle class. Perdana Flat) up to 1,324 sq ft (Desa (completed in 2015), with units from

10 HERALD JULY - SEPTEMBER 2019 Lake side homes are available in Puchong West such as the residences at Lakeside Residence.

2,530 to 3,035 sq ft - a significant lead Condominium (1,044 to 1,864 sq ft). (completion by 2019, 750 to 1,000 sq over the second largest area (Aurora Taman Puchong Prima and Desa ft). Of the four, Seri Akasia and Taman Residence, 1,441 sq ft each). Impiana start at around RM300 per sq Puchong Utama are Rumah Selangorku ft, followed by Desa Idaman at a higher projects. Price-wise, the latter, being Being a later development, properties RM350 per sq ft, and Aurora Residence affordable homes, are priced at around in Puchong West command a higher starting at RM412 per sq ft. RM220 per sq ft; meanwhile Aviary asking price over their eastern Residences and Hillcrest Height have a brethren. However, there are pockets As is the case for more recent starting price of around RM600 per sq ft. where one can find value buys. Keen developments, newer developments eyes should look at these noteworthy command a higher asking price. There Puchong has since grown to a projects: Desa Impian, Seroja are currently four projects that are commercial, industrial and retail point Apartment, Taman Puchong Indah, under construction: Aviary Residences of interest in its own right, holding its own Taman Puchong Perdana, Seri Pelangi, (completion by 2022, 753 to 1,076 against other towns in Klang Valley. The and Taman Puchong Permai. These sq ft), Hillcrest Height (completion by future is bright for this former plantation, projects have recorded asking prices 2021, 1,011 to 1,367 sq ft), Seri Akasia and from the looks of it, the only way below RM200 per sq ft. (completion by 2020, 900 to 1,126 it can go is up, and undoubtedly long sq ft), and Taman Puchong Utama term. For those who are looking for a bargain, then out of the projects mentioned above, Seri Pelangi, Seroja Apartment, Taman Puchong Indah and Taman Puchong Perdana are the locations of choice. The built-up areas of the projects listed are as follows: Seri Pelangi (657 sq ft; RM190 per sq ft), Seroja Apartment (667 sq ft; RM120 per sq ft), Taman Puchong Indah (645 sq ft; RM190 per sq ft), and Taman Puchong Perdana (538 to 560 sq ft; RM120 to RM186 per sq ft).

We observed that projects closer to the Klang River have a higher asking price - more specifically, projects that are closer to the lake. Four projects that fall under this category include Taman Puchong Prima Apartment (645 to 807 sq ft), Desa Idaman Residences (958 to 1,027 sq ft), Aurora Residence (1,411 sq ft) and Desa Impiana The commercial shops at Taman Puchong Prima.

JULY - SEPTEMBER 2019 HERALD 11 Virtual or Reality: Life in A Token World

Blockchain has come under scrutiny following recent security breaches at Bitcoin exchanges. However, its proponents would regard the incidents as a blip in the journey of a technology whose use would eventually become the norm. For instance, developments in tokenisation — the process of converting an asset into a token that can be transacted on a blockchain — have continued to gain pace. A tokenised property would be analogous to a REIT with much more flexibility and minimal fees for intermediaries would be analogous to a REIT. Tan Kok Keong, Co-Founder of Fundplaces, explains how to finance, build, and lease a hotel with three types of tokens. By Tan Kok Keong, Co-Founder, FundPlaces

At present, blockchain is no longer test- via smart contracts on the Ethereum premium asset of such magnitude for tube babies with uncertain use cases blockchain. Propy has sold numerous funding. Its success could entice more and a questionable future. Regulators other properties in a similar fashion building owners to consider the same. have started to institute laws that in California and Vermont in the US, But how does tokenisation work, and facilitate blockchain adoption and and even a 40 million euros Italian what are the advantages of executing even spearheading projects. mansion. Last November, Proppelr a tokenised real estate project? and Fluidity started working with the In November 2017, Propy brokered developer of a luxury apartment in The Genesis of A Tokenised Hotel the sale of an apartment in Kiev, Manhattan’s East Village, Thirteen Project Ukraine, to Michael Arrington, co- East + West, to tokenise the $30 million In undertaking a real estate founder of the technology media project on the Ethereum blockchain. development, the key risks are the website TechCrunch, for US$60,000 This is the first tokenisation of a process of securing equity funding,

12 HERALD JULY - SEPTEMBER 2019 Factors Possibilities / Known Examples of Blockchain Applications new issuance of LITs can be auctioned. LIT prices will fluctuate with treasury bills’ Moving property titles onto blockchains will be a significant interest rates and/or as the project’s risk first step. Dubai Land Authority is moving property titles on to increases or reduces. These instruments blockchains and implementing laws to recognise contracts. can be traded like current fixed-income Sweden’s Lantmãteriet is working with Evry to simplify the whole Regulatory products. process of property transactions. Singapore is similarly explor- ing the same concept. In the private transaction process, Propy Hotel Use Token (HUT) has a very visible player who has successfully enabled real estate transactions on Smart contracts to complete. HUTs are hotel-room per-night usage tokens. Each hotel room may be A blockchain-based accounting system could become the divided into 330 HUTs per year norm. If it is combined with Smart Contracts for all business ac- (assuming 35 nights of downtime for tivities of an asset, a real-time net asset value of a property can maintenance). Each HUT owner may be established. Compliance and know-your-client services are use the HUT to book a room to stay also emerging. On 16 April 2019, Ernst & Young (EY) launched Accounts its second-generation EY Blockchain Analyser for financial or re-sell to other users. HUTs may be reporting, forensic investigations, and transaction monitoring, issued uniquely for an individual hotel among others. InvestReady, a Securities Exchange Commission room and the day of the year, or it (SEC)-compliant investor verification platform, was launched can be sold as generic usage tokens. to provide the investor with a one-stop verification service for Generic tokens will mean an added multiple investment platforms. step as a hotel booking intermediary is Governments are increasingly issuing licenses for exchanges needed to determine the availability of and crowdfunding platforms. On 11 November 2018, the Mon- rooms. The total value of HUTs sold for etary Authority of Singapore (MAS) and Singapore Exchange each year before construction starts or (SGX) announced the successful development of Delivery any pre-determined date will form the Platform versus Payment (DvP) capability for the settlement of token- base case for the projected economic ised assets across different blockchain platforms. This will help returns of the hotel ie. the value of HOTs. simplify post-trade processes and further shorten settlement cycles, as well as potentially improve the liquidity and reduce The sale of HOT, LIT, and HUT tokens at costs for token transactions. the inception of the project or at pre- determined schedules will establish More information is being moved to the blockchain which will the economic value of the project. A increase the reliability of data compared with the internet. The Information similar concept of tokenisation can be increasing capability of predictive model technology will pose a big challenge for any logic driven industry. applied to every real estate asset class.

The world is facing an aging population and probably the The Ecosystem is Taking Shape most significant transfer of wealth to a smaller number but Rapidly a younger generation of people. The willingness of the new Demand The scenario envisaged above is generation to share, to learn and invest online, and to gain still years away. However, the pace control will have a transformational effect in time to come for of the evolution of the ecosystem real estate investments. for a complete tokenisation of real estate is increasing. The table on this page summarises some of the key the challenges of securing financing procurement of services, to ensure components and possible technology at tolerable interest rates, and most projects are developed on budget and application that will accelerate the importantly, the uncertain demand on time. tokenisation process. upon completion. Can tokenisation of real estate change this equation? Advanced construction technology in REITs will not be immune to the rapidly the areas of pre-fabrication, automation changing environment. A mature Let’s start with a use case where I want or even 3-D printing, will help to reduce tokenisation ecosystem can result in an to acquire a site for hotel development. the variations in project schedules. alternative scenario whereby investors Before executing on the land purchase, Contractual agreements will be on can create a personalised REIT with I start sourcing for buyers of three types smart contracts whereby collections co-ownership of completed assets, of tokens: Hotel-Owners Token (HOT), and payments are automatically co-financing of developments, or co- Loan-Interest Token (LIT,) and Hotel- triggered. The system will then provide development opportunities across Use Token (HUT). If these tokens are a real-time risk-adjusted value of the different countries. For the more passive entirely sold, I would have de-risked the project, ie. the value of HOT. Assuming investors, the increasing availability of development entirely. HOT starts at par value of $1 based artificial intelligence can help them on a total return of 60% over 3 years, in devising an optimal investment Hotel Owners Token (HOT) an increase in projected returns will portfolio. Where does that leave the REITs HOTs are similar to equity stakes in a increase the value of HOT, and vice when this happens? Will the touted tax development project. HOT owners are versa. benefits be sufficient for REITs to remain assigned their proportionate economic as a competitive investment option? It rights similar to an owner of the project. Loan Interest Token (LIT) is something for all of us to ponder and The project financials will be recorded LITs are loans that investors will provide act on while we still have time? on a cloud-based accounting system. to the project. It will appeal to investors Project teams are formed via Honest who want a stable return and a fixed This article first appeared on REIT Buildings, a data-driven platform for duration for their investments. Each AsiaPac.

JULY - SEPTEMBER 2019 HERALD 13 CALLING OUT MALAYSIA’S BIDDERS for FIRST EVER JEWELLERY AUCTION! Immerse in a journey of jewellery craftsmanship from ancient times PREVIEW to this glorious modern age of jewellery collections in Malaysia! Be our bidder and avail of the chance to acquire the latest dazzling DATE 2-3 Aug 2019 and unique fine jewellery collections sourced across the globe! TIME 11am-7pm In conjunction with the Malaysia International Jewellery Fair 2019 VENUE KL Convention Centre (MIJF), Elite Expo Sdn Bhd is organising the first ever Malaysia jewellery auction on 4 August 2019 commencing at 2pm. It would be your paradise with exotic and luxurious jewellery collections from all around the world such as Europe, Africa and Asia. Expect to witness AUCTION masterpieces from countries like Italy, Madagascar, Zambia, Indone- DATE 4 Aug 2019 sia, Philippines, Vietnam, Thailand and Malaysia, with an estimated TIME 2pm-6pm total value of RM6 million! It is also worth noting that MIJF auction is VENUE KL Convention Centre honoured to have received consignments that are extremely unique and rare to be featured in this auction.

Unique and precious jewellery collections of MIJF 2019 Jewellery Auction

Dragon Shape Natural Jadeite Bangle & Ring Set 6.07 carats Solitaire Ring The Golden Legacy 21k Gold Female Vest - Jadeite with Diamond and Ruby Setting - (estimated RM173,000-RM198,000) (estimated RM420,000-RM480,000) (estimated RM210,000-RM240,000)

Why smarter investor constantly seeking rare and unique collectable high-jewellery from auctions?

Jewellery auctions have gradually set a trend across the global jewellery industry in recent years. The market value of jewellery pieces can increase drastically within just a few minutes in a jewellery auction and this is where investors, collectors and sometimes the general public grab upon the chance to promote jewellery brands and to add value to their jewellery collections. Besides the high commercial value, jewellery auctions also reflect upon the elite’s appreciation towards such artistry and aesthetic value of the jewellery pieces.

Website link : http://mijf.com.my/mijf/bidder.php

Jointly-organised by Endorsed by Supported by Official Auction House Official Laboratory

For more information, please contact Elite Expo Sdn Bhd Henry Butcher Asset Auctioneers Sdn Bhd Tel: (+603) 5891 1157 Email: [email protected] Tel: (+603) 2694 2212 Email: [email protected] Website: mijf.com.my Website: www.henrybutcher.com.my