Press Release: 168 Park Selayang Partners with BYD to Showcase Cutting-Edge EV Cars, Driving Sustainable Living and Future Mobility

KUALA LUMPUR, 15 June 2023
– 168 Park Selayang, the first mixed-development project in Selayang, has partnered with BYD to bring advanced EV technology to 168 Park Selayang’s Sales Gallery, reinforcing its commitment to eco-friendly solutions and attracting a wider audience. The collaboration will be highlighted through a BYD roadshow at the 168 Park Sales Gallery every Saturday and Sunday throughout the entire month.

168 Park Selayang, a white knight project by Infra Segi Sdn Bhd, is not just set to be a landmark development that brings a modern feel to Selayang, but also one of the first developments to embrace sustainable living by providing 12 EV Chargers in its development. There will be three units of EV chargers at the commercial mall, where visitors will also be able to use them, while the remaining nine units will be spread out across its 3 blocks, with three chargers in each block.

The collaboration between 168 Park Selayang and BYD represents a significant milestone in promoting sustainable living and fostering the adoption of advanced EV technology in Selayang. 168 Park Selayang is further enhancing its reputation as a forward-thinking developer committed to delivering eco-friendly solutions to its residents.

“We are thrilled to partner with BYD in showcasing their sought-after advanced EV technology at our Sales Gallery. This collaboration aligns with our vision of providing a sustainable living environment and attracting a diverse range of potential buyers who share our commitment to environmental preservation. As a property developer, we need to be future-ready and that is why we have worked closely with different parties to ensure the integration of EV chargers as part of our mall and residency blocks, providing convenient charging facilities for residents and visitors,” said Edward Lum, CEO of 168 Park Selayang Sdn Bhd.

Edward added, “Our development highlights the concept of nature being surrounded by lush greenery with unobstructed sky views. Its convenient proximity to nature including attractions like FRIM, Bukit Lagong, and Taman Rimba Komanwel adds to the appeal of our project in attracting customers.”

During the roadshow at the 168 Park Selayang Sales Gallery, visitors will be able to view, and test drive the fully electric BYD ATTO 3, the first SUV built on BYD’s advanced e-platform 3.0 that is specially designed as a high-performance EV, providing intelligence, efficiency, unrivalled safety and aesthetics. This roadshow offers an immersive experience for visitors to explore and experience BYD’s state-of-the-art EV technology firsthand. At the roadshow, any potential buyers signing the booking form for a unit of 168 Park Selayang will have a chance to purchase BYD with a free wall box and full car tinting.

Comprising three high-rise residential properties with unobstructed sky views, optimised layouts, multi-tier security and a shopping mall, 168 Park Selayang is set to become the new and fresh focal point in the mature Selayang area. 168 Park Selayang offers 1,433 high-rise residences in two blocks. Block A comes in five sizes, ranging from 560sf to 1050sf with a starting price of RM294,000. Block B comes in three sizes, which will be launched soon. The variety of units presents potential homeowners with a wide selection to suit their lifestyles and budget.

For further information on the development, potential buyers may visit
https://www.168parkselayang.com.my/
       or call them at 012- 282 8263. The sales gallery is located at Lot 168, Jalan Kuching, Bandar Selayang, 68100 Batu Caves, Selangor and is open daily from 9am until 5pm.

-ENDS-

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170,000 Penang homes cannot be sold for 10 years

Still remember one latest measure by the Penang state government to ensure the price of properties remain affordable but only for the deserved? Latest news is that 170,000 of Penang homes are affected by this moratorium. This is from a list of 1,182 stratified projects on the island which are considered low cost and low-medium cost units for first time buyers. State housing, town and country planning committee chairman Jagdeep Singh Deo said the list consisting of 174, 564 units, including low-cost (LC) and low-medium cost (LMC) units, had been handed over to the Land Office.

This will be the list that will be used as terms of reference by the Land Office in vetting transactions for such units. Just to recap, under the new ruling meant to clamp down on property speculation, a moratorium of up to 10 years will be imposed on LC units costing up to RM42,000 and LMC units of up to RM72,500.

I have no doubt that this will ensure the LC units remain in the hands of those who needs such units. However, we shall have to see if the vetting can be done without fear, favour or corruption. I also feel that this should also be made compulsory for all buyers of such units in Malaysia, not just in Penang. Be reminded, affordable housing is a public need. It is not for those who can afford many such units to buy and resell it more expensively in future. If only everyone can follow what my friend said, ‘My mum said she does not want to apply for the LMC eventhough she qualifies because she is staying with me and she does not want to take something from others who are more deserving’.

written on 18 March 2014.

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174,000 millionaires in Singapore

According to a report by Credit Suisse Global Wealth Report, the typical average wealth per adult in Singapore is US$282,000 and this includes a person’s home, if he owns it. In other words, if the house is still under mortgage loan, then it is not included. This is an amazing number and it came to the conclusion of 174,000 millionaires in Singapore. This ranked Singapore second in Asia-Pacific region after Australia in terms of wealth per adult. Globally, Singapore is now ranked 8th.

Number one country is still Switzerland with an average wealth of US$513,000 per person. Australia is second with average wealth of US$403,000 and Norway in third at US$308,000. The report defines wealth as the value of financial assets plus real assets – mainly real estate – minus household debt. If you have cash of RM200,000 but you have a RM500,000 loan, it means you are in the negative and not positive RM200,000.

The 174,000 millionaire Singaporeans are expected to continue their climb by another 35% to 235,000 by 2018. I think this a very good piece of news for Iskandar, if just a few % of these millionaires decided to buy one piece of property there. 🙂  These are not people who still owe money here and there. These are real millionaires with net worth. In RM, even if we assume they only have RM2.6 million per person and they get 1.6% FD rate, it’s about RM3,500 per month. This is not enough to cover mortgage for RM1 million property but if it’s just anything below RM800,000 they can buy without even a little damage to their net worth and yet be exposed to potential capital appreciation as long as no bubble bursting in Iskandar.

How about Malaysia? As per Credit Suisse, there were about 36,000 millionaires in Malaysia in 2012. Are you one of them or going to be one very soon?

written on 28 dec 2013

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Sweet 18 is definitely a good ranking against the world

This morning I listened to a radio channel (chinese) and I switched to another channel when the lady radio deejay tried to sound professional about Malaysia’s latest ranking for World Bank’s “Ease of Doing Business Report 2016”. She said three things which shows that she is reading too much Facebook comments or reads nothing at all.

Comment 1: “18th in the world is actually not too bad but can be better.”
(Malaysia is already no.1 among emerging economies and is better than many developed economies of the world)

Comment 2: At least this is something positive since the economy is doing so badly currently.
(Malaysian economy is still growing and trade surplus is hugely positive. Only the ringgit is volatile but this is also due to that green currency which kept going up on every sign of a better condition which is crazy)

Comment 3: I think Malaysia has dropped one rung since last year was 17.
(18th was the ranking of last year)

My dear lady deejay, you are a Malaysian. Considering the current economic situation which is STILL growing but not as great, the least you can do is to give confidence. Please, stop talking about economics or finance or business. Stick to your usual health, entertainment, food, whatever easy topics.

Oh yeah, Malaysia is ahead of the following countries too. Switzerland (26th), France (27th), Netherlands (28th), Japan (34th), United Arab Emirates (31st), Thailand (49th), China (84th) and India (130th). Malaysia had improved from the 20th spot in the 2014 report to the 18th position in the 2015 report. World Bank country manager for Malaysia, Faris Hadad-Zervos commented that there were many improvements in the report which would benefit investors and local entrepreneurs. Further improvements are needed in reducing bureaucracy in terms of filing taxes and reducing processes by getting permits in the construction sector. Happy listening, well to songs if not the deejay.

written on 29 Oct 2015

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18,000 rent-to-own units in Penang.(not immediately yeah)

If we could not save enough downpayment for a home. Somehow, just could not, then we could also opt for rent-to-own (RTO) units.  RTO meant that the buyer usually does not need to come up with downpayment and some portion of the rental would be used as downpayment a few years down the road. This is a win-win situation for the buyer and the developer too. Just make sure the offer is a genuine one and you are not actually paying even higher than buying your own property lah.  According to Penang StateHousing Committee chairman Jagdeep Singh Deo, there were currently 2,088 rent-to-own (RTO) units in Penang.

Article in nst.com.my
    Due to the COVID-19 pandemic, State Housing Committee chairman Jagdeep Singh Deo said he would propose that the current ceiling price of RM300,000 for affordable housing on the island and RM250,000 on the mainland be reviewed.  This was because the property market has been affected.  He said, “As such, we have to be aggressive to assist both purchasers and developers of such affordable housing so as to spur our economy. As I have said before, the housing sector, directly and indirectly, involves more than 100 industries.”

He also said that housing is a basic right for everyone. There are many families whose income were affected by the Movement Control Order(MCO) He said, “To help this group of people who are affected economically, the state will increase the number of rent-to-own projects for the lower income group.” He said that the plan is for Penang to have up to 18,000 units of RTO properties by 2030.
Article in nst.com.my

Just in case you did not know, I wish everyone would own a roof over their head. OWN, not rent. This is for a very simple reason. After we retire, we will most probably be living another 20-25 years. Now, imagine the rental of RM1,500 which we are paying today remained unchanged 20 years later when we officially retire without a home with our name. If that happens, then just get ready enough money for rental. Not a big deal at all. RM1,500 x 20 years x 12 months = RM360,000 only…

Grab any opportunity to own a property.  If you did not buy that new smartphone of RM5,000 on instalment plan for 12 months,most probably you have enough extra money to pay 50% of the necessary mortgage for a RM200,000 home. That’s the significance of RM500 every month. By the way, the rental paid for the RTO can still be partially yours. The money paid as rental to any owner is theirs.  PLUS, when you retire, they will not ask you to stop paying rental yeah.  Happy understanding.

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19 years with Maxis… my second month with U-Mobile. How’s the experience?

This article is personal experience yeah. Not selling any telco and I do not have any packages from them to sell as well. By the way, if there’s a telco which is perfect; best coverage, fastest speed and lowest price, then it would have won all customers already. Thus, choosing a telco is also like choosing a property. Stop waiting for the perfect one yeah. Oh yeah, even if we are looking for a life partner! Earlier article on perfect property:
4 reason people wait for the perfect property

Higher price, better coverage.
 I am a loyal customer. Seriously. How else would you explain 19 years of uninterrupted subscription to Maxis even with the ‘yellow man’ advertisement, even with the never ending bombardment from Celcom and even when I was paying a lot more when compared to my wife who has switched to Celcom for over a year before me. Contemplating I did but  always think that it’s okay to pay extra for better coverage.

Coverage in places I frequent.
 If compared to my wife’s Celcom, then my Maxis (then) has better coverage in all the places we (my wife and I) usually frequent. Not very much better but slightly. We are based in Kuala Lumpur.

Changing my line, finally.
 Finally, when a friend told me that when he travels, he does not need to buy any foreign telco sim card, it piqued my interest. After some further enquiries, I learnt that he was also a Maxis user until he switched to U-Mobile. He could roam for the first 3Gb for free in MANY countries. I dropped by U-Mobile finally and chose the package as per image on your left.

Basically, it gives the same 20Gb as what I got from my MAXIS line of RM98 / month. In other words, not a big difference, just RM19 per month. However, it gives me something which my kids use all the time! Video Onz which is good for Youtube. In other words, if my kids are using my line to watch Youtube, this will NOT deduct my 20Gb… 🙂

It gives me a 1Gb Data in 12 countries and that included Bangkok which I visited for 5 days recently. 1Gb is more than enough for Whatsapp until I return to the hotel and use the hotel wifi instead to do heavy uploading and downloading. If I went to Bangkok and I bought a Sim Card there, it will incur extra cost of
RM30 for 7 days. (click here to view)

If I use Maxis roaming instead, then it’s RM38 per day… Hmm…

U-Mobile vs Maxis.
Honestly, Maxis provided me better and faster coverage on an overall basis. There has also been occasions where I had to rely on my wife’s Celcom but generally, I would say U-Mobile was available in close to 100% of all the places I go (Kuala Lumpur, Selangor and Perak), just that the speed will be lower.  Am I continuing with U-Mobile? Yes, at the moment. Unless when I needed to change my phone, then we shall look at the overall packages again.

Oh yeah, did Maxis call me after my change? To convince me to change back? None. Except for that SMS asking me if I really want to change the line. Haha. Perhaps this is the difference between the telco with the most market share versus one which is trying to gain more market share. So, I think if you are not travelling much and will only be in Malaysia, paying the extra RM19 per month should still be okay. Happy deciding.

3.1 Gb for Videos, free. Not deducted from main 20Gb allocation. The Roaming, used only a little, renewed monthly.

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197 malls in Kuala Lumpur by 2021. ‘Killing’ one another?

Here’s a good read about malls in Greater Kuala Lumpur. According to an
article in FreeMalaysiaToday,
in three years time, the total number of malls in KL would reach 197. Currently there are already 170 and 27 more are coming. When these arrive, there would be a total of 86.2 million sq ft retail space. The upcoming names of these malls, according to Property consultancy firm Savills (Malaysia) Sdn Bhd deputy executive chairman Allan Soo include The Exchange Mall, Mitsui Shopping Park Lalaport, Merdeka PNB118 mall, Pavilion Damansara Heights, Pavilion Bukit Jalil, Tropicana Gardens Mall, CentralPlaza mall and Empire City mall. According to Soo, the average occupancy rate for retail space in greater Kuala Lumpur stood at 87.9% as at end 2017. With all these incoming supply of more retail spaces, what will happen to the rental charges then?

As per the article also for commercial offices,
 the National Property Information Centre reported that there would be an additional supply of about 20 million sq ft of shopping complexes and 22 million sq ft of purpose-built offices in the market this year. With all these, it will likely to result in lower occupancy rates, with rental charges decreasing further. Referring to Knight Frank Malaysia’s Skyscraper Index, contained in its Global Cities: The 2018 Report, which was released last October, Kuala Lumpur’s skyscraper rents offered the best value among commercial buildings over 30-storeys surveyed across 23 global cities. The article also quoted Rahim & Co International Sdn Bhd executive chairman Abdul Rahim Abdul Rahman as saying: “There is a worry that these spaces may not be occupied. The positive part of it is people who do business have choices and rentals may not be as high as before.” With regards to retail space, he said, “I don’t know the tipping point (for retail space) but I would be comfortable with an additional two million sq ft, not eight million sq ft or more.”

My personal take, as a shopper? Whether the rental for retail space would go up or down depends on the actual mall where it is based and not based on how much retail space are available. Three questions. Question one. Would we like to go to a new mall? Of course we may love to. I always go and visit new malls. Question two. If that new mall did not attract us enough, would we go again? Of course we won’t unless something new happens. Question three. When we stop visiting that new mall, would we stop visiting all malls or would we go back to the mall(s) that we love? I think the answer is a firm YES, we will continue to visit malls that we love. In other words, the malls we love would continue to be visited and if this mall continues to receive a lot of customer visits, then what are the chances for the rental to drop?

Please do not tell me that the shops would prefer to pay for a lower rental at some new malls without much traffic versus a popular mall with hundreds of thousands visitors every weekend? There are many malls which would not survive, definitely. There are many malls in strategic areas which will always be visited. There are many established ones which as long as they continue to do more to maintain their attractiveness, it would also do well. More retail spaces do not mean the whole market for retail lots would collapse. My view as a frequent shopper. On a yearly basis, I visit malls at least 100 times. Cheers.

written on 22 Feb 2018

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The 1998 financial crisis and the one in 2020. (are they similar?)

An old friend (number of years I have known him, not his age) and I were chit-chatting and he asked me what’s the window of opportunity to buy a property at the lowest possible price. I replied him that I have no idea. In fact I do not know of anyone who could say they know when will the property price be dropping to the lowest as well as where to find these elusive properties. He asked about the current ‘financial crisis’ to which I replied we currently have COVID-19 crisis, we are not in a financial crisis now. At least not yet. He asked what’s the difference since many people are without jobs nowadays and it was the same in 1998.

Let’s look at this actual announcement by our Bank Negara Malaysia (BNM) back in March 1998.
Click here for full article from BNM website
  This announcement was how majority of all banks and finance companies were ‘advised’ to merge. Tier-1 finance companies were identified and advised to absorb the smaller ones. At the time, size matters tremendously and this was what BNM wanted as well, “To ensure that the finance company industry continues to remain sound, the minimum risk-weighted capital ratio requirement for finance companies will be raised gradually from 8% to 10% with effect from 1 January 2000 with an interim ratio of 9% to be complied with by the end of 1998. The minimum capital funds for finance companies will also be progressively increased from the current RM5 million to RM300 million by end-June 1999 and subsequently to RM600 million by end-2000.”
Please do read the full article here.

We could see the situation then was not as positive as today. Even if not all banks were in trouble but because of the financial crisis, many banks suffered from defaults from customers and if they fail, then it will affect all depositors and not just the ones who defaulted. BNM definitely do not wish to see any domino effects from failure of some financial institutions affecting all other banks. That was then, yeah.

Fast forward to today, same month, March 2020 versus March 1998 then. BNM announced the moratorium of 6 months. Borrowers who paid on time and in good standing could now STOP paying their home loans and hire-purchase loans for 6 months starting 1st April 2020 and ending 30th September 2020.  Briefly, this meant that ALL banks are expected to CONTINUE paying their staffs for 6 months while their customers STOP paying them… I really hope everyone could see a major difference now?

Non-Performing Loan (NPL) numbers? It was just a couple of percentage points away from 20%  in 1998.  It’s 1.6% as at January 2020. By the way, if the question is whether the NPL can suddenly shoot up, no one can answer you.  What is clear however is that the question of whether 2020 is just like 1998 has been answered. Briefly, no. Nowhere near if both years are to be compared side by side.

Yes, I bought a finance counter recently. Just a little and I will forget it for a while first. Should you found that counter you want and is waiting for an extra drop of 2 more sen before you buy, maybe can buy now lah. Not a great time for the stock market meant good value to buy.  If you saw a video showing you a property which you love and it happened to be near your office and the developer was throwing in a renovation package, I think it’s a buy lah. Let’s just assume situation got worst a bit more, the developer for that same unit will just add a few more air-con unit. You may not want the developer to give you so much they cut corners or worse case, they ran away half-way, right? However, what IF the situation gets better? Hmm… Happy deciding.

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Oh dear, new RM28.63 billion of obligations for 1MDB?

These days, 1MDB is not that hot n issue anymore. It is now part of the new government’s issue. Recently, The Straits Times of Singapore reported that 1MDB’s debt obligations could be as high as US$6.9billion (RM28.63 billion) and that Malaysia is NOT aware of it. (Okay, we have debts that we do not know, yet? By the way, RM28.63 billion is HUGE and it’s around 70 percent of total GST collections in 2017. If a condo is RM1 million, this amount is enough to buy 28,630 units and this will clear up whatever unsold condo supply in Kuala Lumpur!). Tony Pua, political secretary to Finance Minister Lim Guan Eng, issued a statement criticising the inaccuracy of the
ST
 report and questioned other reporting by the
ST
 on 1MDB affairs. He said, “I was stunned by the
ST
’s reporting standards where both the writer and editors failed to read and understand the legal financial statement by IPIC.”
Full report in Edgeprop.my here.

That ST article was written by correspondent Leslie Lopez. Editor of
The Straits Times
of Singapore (ST) Warren Fernandez issued a statement saying that it stood by the article. Lopez insisted that the story was accurate and claimed that the Malaysian government was in the dark because they were unable to access documentations. Lopez said,“The London lawyers appointed by the Malaysian government have been instructed to look into the possibility that the notes cited in the IPIC announcement could be tied to 1MDB.” In fact Fernandez said the
ST
 stood by its reporting which was based on “documents and information from highly places and reliable sources.” (Seriously, this is new Malaysia and we should now know everything and be transparent about everything right?)

Now we have Abu Dhabi’s state owned Mubadala Investment Company denying that six bonds totalling US$6.9 billion that it is assuming from its subsidiary International Petroleum Investment Co (IPIC) are connected to 1Malaysia Development Bhd (1MDB). This was in response to a query from
The Edge.
The six bonds — three in US dollar, two in euro and one in British pound sterling denominations — are worth US$6.89 billion collectively. It (Mubadala) said, “As for the US$6.9 billion, and as per our announcement on the LSE on 12 October, such amount represents the IPIC public bonds that will move to Mubadala Development Company. These bonds were issued as part of a GMTN programme by IPIC and have no connection to 1MDB.”
Full article in Edgeprop.my here.
 I think we are now waiting for ST’s next response.

written on 18th Oct 2018

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Getting ugly? Hope not. Better not.

I have not written on this before but I think I should pen my thoughts this time. I do not like huge banks which continue to lower their lending standards and aiming at higher profit in the expense of ‘prudence’. Their thought? As they are too huge to fail, the government will bail them out. This is why financial crisis happens and it almost always start with the banks. Huge banks. What if the possibility now happens in Malaysia? 1MDB is nowhere near the size of a typical bank in Malaysia but it is still a huge ‘company’ by any standard.

1Malaysia Development Bhd (1MDB) has failed to settle a debt originally due on 30 November 2014. An extension was given till 31 December and this deadline was also missed. Now, another extension, presumably a final one was given. Deadline is 31 January 2015. Amount is RM2 Billion and it’s owed to a few local lenders such as Maybank, RHB, MBSB and Alliance Investment Bank. Since this is RM2 Billion, the amount is considered big and I think if payment is still not forthcoming by 31
st
 January 2015, it will be a big issue not just within Malaysia but likely to be reported around the world. The first big failure in corporate Malaysia for 2015?

It’s ok if 1MDB would like to stress that this is just due to technicalities. However, the same reason cannot be used continuously. Perhaps it will incur some losses because RM has lost a lot of its value but this is all part of the currency exchange losses which every organization should already planned for. Otherwise, don’t go out of RM or Malaysia. Some details: 1MDB is supposed to get RM4.3 Billion from an investment fund in Cayman Islands and this would have enabled it to pay the RM2 billion easily. However, this has not reached its hands. Cash flow management is really not well at this moment and with the volatile business environment meant it may get worse. It is also reported that while all its loans are in US$, most of its earnings are in RM. This in effect meant that its loan amount has just increased slightly over 10% within a few months as US$ continues to appreciate versus RM.

I just hope no new ‘unforeseen circumstances’ come 31
st
 January 2015. Aiming at huge profits meant also huge risks. Sometimes, things just do not work the way we wanted it to. Just have to always remind myself to manage the risks versus profits objectively. There’s no need to suddenly be very rich or very poor. ‘Sikit-sikit, lama-lama jadi bukit’ too.

written on 6 Jan 2015

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1MDB is “manageable risk” – Fitch Ratings

Two friends did not believe me when I told them that 1MDB may be a huge issue for a few famous people but it will not affect the economy adversely and certainly have got very little to do with Ringgit depreciation or rather US$ appreciation. My earlier article here:
RM down, end of the road soon?

Of course, they disagree. Today in an article in a local English daily: 1MDB is a manageable risk, according to Fitch Ratings. Please google for Fitch Ratings if needed. The reason it is manageable can already be seen from the huge rejection of mortgage loans but in 1MDB’s case, all the banks do not expose themselves to one single borrower with a super huge borrowing. Anyway, Bank Negara Malaysia would also not allow it to happen. Hope everyone note that there are countries where lending is simple. You apply you get it. That was how some ‘amazing’ developed country can go into a crisis in the first place. Well, here in Malaysia, if you do not qualify, you simply just do not qualify. Buy a cheaper home and reapply, perhaps you may get it. This is how strict the banks in Malaysia are.

Fitch Ratings however said that there is certainly uncertainty as to the level of 1MDB’s debt but it appears to be manageable when compared to the size of the banking system. Besides that, adequate capitalisation and healthy profitability meant that currently, Malaysian banks are well positioned to absorb any significant increase in credit costs. In brief, should there be a sudden default in a big way, the banking sector should be able to hold its position. It said that 1MDB is not an indication of a broader systemic risj but of course it adds more challenge to the Malaysian operating environment in the near term. In brief, it will definitely cause negativity due to its huge debts but this does not mean there’s anything hugely wrong with the economy currently.

The best part about the discussion was, these two friends after insisting that 1MDB will affect the economy then asked me about properties to buy etc. Huh? Potential huge problems to the economy as what they said and yet they asked me where to buy? Are they out of their mind. 1MDB may fail anytime if they are right in their opinion. Why are they ‘locking’ themselves up by buying a property? Should they not keep cash in bank instead? Of course, find one bank without exposure to 1MDB please. Happy believing whatever you want to believe. Just make sure you act accordingly please.

written on 19 Mar 2015

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YES, RM2 billion Toyota plant in Klang is confirmed

With investments comes jobs and with jobs comes salaries to buy properties. Haha. Yes, Klang folks would benefit from the latest announcement by UMW Toyota Motor Sdn Bhd (UMWT) who confirmed that it will build its second plant in the country. This will help to double its production to 100,000 units a year when it begins operations in early 2019. UMWT president Datuk Ismet Suki said UMWT will invest in the RM2 billion project – its biggest investment ever. Plant will be located in Klang and will be 670,000 sq m. Initial production is 50,000 and can be expanded if needed.

Ismet said UMWT will use its own cash to fund the project. he said, “As far as this project is concerned, there is no borrowing.” The next statement is worth reading over a few times. UMWT deputy chairmanAkio Takeyama said,
“This investment is not simply to increase production capacity but to increase competitiveness, from volume-oriented production to competitiveness-oriented production for sustainable growth. Looking at the Malaysian market for the mid-long term, we think it will grow moderately so our investment will improve our production capacity for future demand.”
This new plant will focus on manufacturing passenger cars, including energy-efficient vehicles, while its current factory will churn out commercial vehicles.

My Klang good friend, Mr. A, the one who has only bought landed homes is very happy and excited. Yes, he drives a Harrier which he humbly said, ‘borrowed from his neighbour.’ Haha. Before we get too excited, do note that the plant will only start operations in 2019. Of course, thinking ahead, buying good properties nearby the plant would be useful. Surely some of the employees would not want to stay too far away. Especially the expatriates who would not normally purchase a home. Good opportunities yeah. Happy investing and wait and not the other way around.

written on 27 May 2016

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2-storey shophouse for RM7 million; 20 ft x 200 ft

Many years ago, someone told me that the pre-war houses were being snapped up by some investors who are turning them into commercial concerns. The price then was mentioned as RM200,000 as these shophouses require huge investments to make them safe, usable and perhaps a viable commercial concern. Just some time back, some articles pointed out that the rental for these pre-war homes have risen many folds. Some quoted numbers included RM4,000 rental being up 300% to RM12,000. Many small businesses were forced to move out so that businesses with higher profitability can move in and thrive. I think this is very true even till today, just that it might be even more expensive!

According to an article in The Edge Property, there is now one 2-storey pre-war shophouse which is being refurnished currently. The current owner is spending effort and cost in restoring some of its more rundown parts. The price tag for this unit? A cool RM7 million. Before everyone say, ‘crazy,’ let’s get to know the following first. This building is in Kimberley Street, a famous place for hawker food. It’s as famous as Penang’s delicious hawker food can be. This house has three courtyards as opposed to one. One main reason, it is 20ft wide and 200ft long. This is nearly three times the usual length of a landed property being offered in the market today. The ceiling height is exceptionally high, at 16 ft. The total land area of the property is 3,860 sq ft, with a built-up space of 6,500 sq ft.

The owner said that there are only 8 units of such unique characteristics despite the fact that there are 4,000 shophouses in Georgetown. The price of RM7 million would be for the house after the refurnishment work. They include the replacement of its floorboards with Balau wood flooring, roof tiles, plumbing as well as electrical wiring. The most costly restoration was for the decorative ceramic tiles on the facade which were pieced together by artisans from Xiamen, China. The property was purchased in 2011 for RM2 million which was already a premium of 25 percent versus the value then. The reason to sell is because the owner would like to move on to restoration projects. He said that he is looking for a buyer who would appreciate a property like this. In fact perhaps it can be used as a vacation home as well since it’s within walking distance to many tourist attractions.

I personally think there is no such thing as the right value for such a property. Even using it as a vacation home is not the best excuse except if the new owner is someone who is exceptionally rich and happen to be a Penangite or someone who must have a cosy place in a UNESCO Heritage city site. Seriously, there are not many businesses that can be run profitably with a RM7 million price tag. Do note that everything within the property is likely to be precious and the highest expense in the future is definitely the maintenance. To be very honest, RM7 million is not such a big amount for some and I look forward to the new owner being interviewed in future by The Edge Property on why he bought the RM7 million ‘mansion.’ Happy reading.

written on 4th Oct 2015

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6,736 sq ft, corner unit, 24 percent below market value @ Jalan Terasek, Bangsar

Do you fancy a landed property within an established neighbourhood in Kuala Lumpur? Preferably one with huge land area as you know land is an asset which is not expandable anymore, especially in the following mature area. How about
Jalan Terasek 3, Bangsar Baru with a land area of 6,736 sq ft?
 There’s a 2-storey terrace corner unit for which the current owner has asked MNP Auctioneers (Central) to auction it off. The house has a spacious interior with a 6+1 bedrooms combination. A check with brickz.my showed that no transactions for the exact size has happened but the median price per sq ft for the
Bangsar Baru area has been between RM923 to RM1163 per sq ft.
 Here’s the information
available at brickz.my
 The median for the property transactions would be RM1059 per sq ft. If you are keen, do drop by to view by calling the numbers below.
The Proclamation of Sale (POS) and the Condition of Sale (COS) could be downloaded here.

Auction details as below:

Date:28th September 2017 (Thursday)

Reserve Price: RM3.2 million

Market Value: RM4.2 million

Address: 148, Jalan Terasek 3, Bangsar Baru, Kuala Lumpur

Venue: MNP Auctioneers (Central) Sdn Bhd – B-12-12, Megan Avenue II, Jalan Yap Kwan Seng, KL.

Viewing hotline: 016 4407740 / 017 407 6661

Only 5 percent bidding deposit

Do note that the Auction Sale is subjected to the Conditions of Sale. All intending bidders are required to make out the deposit amount based on the fixed reserve price in favour of Yee & Associates (Tel: 03 -5611 6896)   Licensed Auction Firm:  MNP Auctioneers (Central) Sdn Bhd (908971-X). KL Office: B-12-12, Megan Avenue 2, Jalan Yap Kwan Seng, 50450 Kuala Lumpur. Licensed Auctioneer: Soon Chee Leng
To download the POS and COS, do click here.
More photos as below. (My personal advice is still to drop by and view the unit. Famous quote about land? “Buy land, they’re not making it anymore.” — Mark Twain, writer and humorist” Well, in this case, the land has even a home you can call your home sweet home. Cheers.

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Has desperation in the property market started?

I read an article from themalaymailonline.com which a friend forwarded to me. The article started by telling people with some spare cash to buy condominiums as there are now many for sale at bargain prices. It then said that the buyers are selling because they have lost confidence about the Malaysian economy. The report then quoted ONE real estate agent who said that the trend of selling below market value started four months ago. The agent said that there are sellers with 10 properties who are trying to dispose their properties as soon as possible and hold cash because they are worried about the economy for the next two years.

Then, the real estate said something which I think everyone should take note. He said that even the group investors with HOLDING power are selling because these groups normally flip within two months. Many examples were then given, for example, Sentul’s Capers condominium which was completed in early 2015 were being sold at up to 20 percent discount versus its market value just a year ago. She said she has recently sold a unit of 1,281 sq ft for RM850,000 (RM663.5 psf) and this is way below the bank valuation which is above RM1 million or RM800 per square feet (psf). Another units with 6 car parks were being put up for sale at just RM1.15 million. The usual price is Rm1.4 million and usually comes with just 2 car parks.

Worried yet? Well, according to the latest report by the Valuation and Property Services (JPPH), overhang residential numbers in Kuala Lumpur for H1 2015 increased to 1,346 units worth RM1.23 billion.This is up whopping 28.7 per cent in volume and 28.1 per cent in value compared to H1 2014. Transactions however is on a downtrend. It contracted by 7.4 percent in volume compared to the same period last year. Another real estate agent said that despite some people believing that this a good time for bargain hunting, there are not a lot of properties which are being sold under market value as there are still demand.

Have you identified that luxury property that you want to buy yet? Most probably it has to be a condo which has already increased in value compared to when it was bought just 3-4 years ago. If you have identified, have you determined a price that you are willing to buy? If you have determined the price you want to buy, have you started browsing through property adverts for potential viewing? From these viewings, you can start to offer your pre-determined price. I do not think the selling frenzy has started based on conversations with many industry friends thus far. Besides, those who could afford these units are definitely not the typical middle-class people. However, there is little doubt that for those who just want to cash out fast, these sellers would definitely be willing to give huge discounts. 20 percent is definitely possible. Happy viewing and offering.

written on 10 Dec 2015

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20% up since last year, now at RM2.4 million average price per property

No worries, you do not need to read whole article to know where. It’s London. A city which a lot of international buyers love including Malaysians. Current average price in London is now £473,893 (RM2.4 million) and this has shown a huge gap versus UK average property prices which are at £185,496. In fact this gap is widest within the past two decades. According to Acadata and LSL Property Services, that’s the biggest gap since Acadata records began in 1995. One major reason was because of the property recovery in London market since last year. Nationally, prices went up half the rate of London. Besides this, the report also showed that the housing market may be cooling as potential buyers started to resist ever higher prices.

In June, Bank of England announced that for new home loans, banks should ensure that its total of such loans not exceed 15 % of loan to income multiples of 4.5 and above. In brief, ensuring risky borrowers are at a maximum of 15% of all the new home loans. It also instructed banks to assess if borrowers are able to pay repayments if interest rates rise from the present lows by 0.5% to 3.5% over the next five years. The balance is always tough to do, control too much and the action stops. Once it stops, to get it moving is hard. Yet, without control, it may spiral to an unhealthy level.

Sometimes you may wonder why on and off I update everyone about London. I consider London as a good barometer to the property market for the world. In fact many Malaysians who have studied there regarded it as their second home. Parents continue to regards it as a top education destination. Ask any parents and even university students and I think every one would know Oxford and Cambridge. Thus London as such an international property market would be a great early warning system for the property market, in my personal view.

written on 14 Sept 2014

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200% profits in one year. POSSIBLE?

I do not invest in anything which is not regulated, no matter how high the returns may be. Truth is, if the returns are so very high, these companies do not need to get you and me. They would have gotten government’s statutory funds to invest in them. Much easier, simpler and faster and everyone is happy since the statutory funds would then pay you back in yearly profits. Right? Totally wrong! In Hong Kong, a report said that due to a scam, ‘investors’ in a Hong Kong based bitcoin trading company may have losses totalling HK$3 Billion. (RM1.3 Billion). Aren’t Hong Kong people more financially savvy than perhaps KLites? I think when it comes to blind greed, it’s the same in every country.

An estimated 3,000 has fallen for this scam with the cheated amount up to HK$3 billion. One investor said she was promised that her investment of HK$1.3 million would be recouped within four months. I have written about Bitcoin some time ago. Read here:
Buying property with BITCOIN?
 Okay, assuming someone told you to invest RM100,000 and tells you that you will get a 200% annual return, would you believe him? Anyway, value of this un-regulated currency which soared to over US$1,200 (RM4,270) in 2013 has gone down to around US$285 (RM1,104) in January 2015. If you think it is dying, think again. Google for Bitcoin news and you would understand that it’s still very popular. In fact Google is said to be introducing Bitcoin in its new payment system.

Question. Would I buy Bitcoin? No. What if it becomes a regulated entity in the financial world? Well, if it is proven to be a regulated one, sure. Can always buy some for fun. Fun means if up, use the returns for a great dinner. If down means forget the bad chapter. Of course, for now, bitcoin is not the main threat to the usual buyers. Scams are. Scams using bitcoins just happen to be one of them. They say, a fool and his money are soon parted. I would say, when you are greedy,
you can be cheated easily
. Always remember that if it is too unreal, it probably is really unreal. No matter how many times this is reported, there would always be new cases of people being cheated. That’s for sure. Just make sure it is not you or me.

written on 14 Feb 2015

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MRT Line 2: 20,000 to lose jobs, complexities from the underground works

I was wondering what will happen to the people involved in the underground work portion should MMC-Gamuda does not win the international tender which will be called by the Finance Ministry. I read the answer today. The article was in many media and one of it is this one in
FreeMalaysiaToday.com : MMC-Gamuda: Termination of MRT2 contract will leave 20,000 jobless

According to MMC-Gamuda, the termination of its contract to build the underground portion of the MRT Line 2 (MRT2) will result in “immediate job losses” to over 20,000 people involved in the project from a supply chain of over 600 Malaysian companies. In a statement, it said, “Of the 20,000, over 3,000 are made up of MMC-Gamuda JV staff, and of this, more than 60% are Bumiputeras. In addition, the termination will unjustifiably expose MMC-Gamuda to a flood of lawsuits for compensation from terminated employees, sub-contractors, suppliers, manufacturers, and so on, whose contracts will similarly be terminated due to no fault of theirs.”
Full article in FreeMalaysiaToday.com

MMC-Gamuda said it was supportive of the government’s drive to improve the country’s fiscal health and offered a 24% reduction (RM2.3 billion) for the balance 60% uncompleted underground works. This could be achieved
by reducing the number of entrances to stations and the number of active stations constructed. From a total number of 10 stations, four will currently be shelved.” MMC
also explained that the two primary factors affecting the costs of underground works were the increased scope of works compared to the MRT Line 1, such as large floor space and a fivefold increase in the underground entrance and pedestrian walkways, among others. The other key factor is the safety requirement due to the high risk of sinkhole incidents caused by tunnelling through “extreme karstic limestone” in the city centre, including under high-end properties. It added
that if the affected ground collapsed, it could result in “hundreds of millions” in financial losses.

Another article in TheStar.com.my here:
 MMC-Gamuda said that the underground works was awarded to them in 2016 after an international competitive tender that, due to the challenging ground conditions, had stringent pre-qualification requirements with only five contractors being pre-qualified by MRT Corp Sdn Bhd to tender. Out of the five, MMC-Gamuda was the only local company which qualified. The bids were evaluated by the reference design consultant, Arup Singapore Pte Ltd, which was appointed by MRT Corp. The bid from
MMC-Gamuda scored the highest technical score and offered the lowest price.

I think it’s now fully dependent on Finance Ministry’s international tender for the remaining underground works. MRT Line 2 is not just about the Finance Ministry or MMC-Gamuda. It’s not even just about convenience but we are talking about underground work which will have to be carried out with the highest level of expertise. Safety aspects must not be compromised at all regardless of who actually wins the international tender and PLEASE, the evaluation of the winner must be done by EXPERTs regardless of who. There should be no other interferences and cost must not be looked at from the savings part yeah. It’s also the future potential happenings too. Happy following.

written on 9th Oct 2018

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200,000 new marriages, 80,000 new properties

Yes, in Malaysia, on a yearly basis there are 200,000 new marriages every year. There are also a total of 80,000 new properties being built on a yearly basis. This information is from Mah Sing’s group Managing Director Tan Sri Leong Hoy Kum. He said due to this, there would always be shortages of sufficient supply of properties. Thus he believes the group would be able to replicate its amazing 2014 sales in 2015. In fact he expected net profit would grow 18% year on year in 2015. Mah Sing is also shifting its focus to affordability, just like many other developers and thus nearly half or 44% of all its properties would be below RM500,000. The take up rate despite the upcoming GST remains at 75% which meant that break-even stage has been exceeded. In fact he said GST will not be a big issue and the adjustment period should take just 3 months.

After reading through all these encouraging information from Tan Sri, what do you think of the property market in 2015? Of course, not all developers are as positive as Mah Sing. Remember last year REHDA members said that the negative sentiment would persist into 2015? Read here:
Properties in 2015? Tough times.

However, when we look at the overall market it is very clear that affordability is a very important factor which can continue to drive demand. The founder of
penangpropertytalk.com
, Ken told me that affordability is a very popular subject and every time he publishes any of such related articles, the response is very encouraging. I just visited Quill City Mall few days ago and the baby room inside AEON’s baby department is simply amazing. Think objectively, if this group is not the main target, why spend so much effort for the baby room? If this group is the main target, it brought us back to the number of marriages in the first sentence. Yes, the family formation is also increasing tremendously and not just the number of marriages. Thus, smaller properties of below 1,000 sf all the way to bigger sized condos or even landed ones would continue to be in demand.

Yes, it’s also possible that Tan Sri may just be too optimistic but Mah Sing is a listed entity. Its result has to be announced and would be easy for all to see and if majority of what he said did not come true, what do you think would happen to Mah Sing’s share prices? Now, what happens if you think he is telling the truth and you are not ready to buy their properties? Easy. Buy some of their stocks and keep for the next few years. According to The Edge, the top pick for 12 stockbroking firms in town is Mah Sing. Prices? Please refer online and kindly do a bit more homework than believing everything that is written. Pretty easy, just google for ‘Mah Sing, target price’ or other keywords to read more. Happy reading and learning.

written on 4 Feb 2015

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2010: 148.2 million   2015: 400 million  Wow!

Nope, nothing to do with 1MDB. You have been reading thousands of that on Facebook. This is about Magna Prima Bhd which has announced to the market that it is selling a piece of land in Jalan Ampang; Lai Meng School. In 2010, it paid RM148.2 million for it. The plan then was to develop it. The latest plan is to sell the land, take the money and do something else. The price that it is asking for? RM400 million or RM3,500 psf. It’s group managing director, Datuk Wira Rahadian Mahmud Mohammad Khalil said that land prices within the Golden Triangle have appreciated. Thus, their current asking price is within market expectations.

The piece of land’s main attraction is really because it’s a stone’s throw away from KLCC Twin Towers. Nope, it is not a stone’s throw away if my daughter is the one throwing it. 🙂  An earlier report said that pension fund Kumpulan Wang Persaraan (KWAP) was bidding for it at RM3,300 per sq ft or around RM376.6 million. This bid is not yet finalised and talk is ongoing. Wira also revealed that they have also received enquiries from international investors too and the land would be sold to the highest bidder. Actually, as soon as it is an international investor, the potential that they would win is higher. I remember many years ago, one Penang based developer told me that when the KL based developers bidded for lands in Penang, their bids were all crazy. There was no way that any Penang developers could beat them. I think the same situation happens today when the foreign ones are coming in.

The profit from the purchase of this piece of land is pretty crazy. The ROI beats any development at all, even if the development has a GDV of even RM1.5 billion. This is based on assumption of the typical net profit margin at 15%. Yes, this has yet to include the amount of work and the number of years that Magna Prima would have to build it. So yes, a clever move indeed. Sell, get the huge profit and go for the next development. If I am the managing director I think the choice is clear. Let’s see who wins and at what price.

written on 10 July 2015

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2014, 2015 were UNFAVOURABLE years. 2016 is MIXED.

A good friend who was a real estate negotiator in Penang quit his job a few months back to take up UBER driving in the Klang Valley. He said, he will earn enough money toby a property in Kuala Lumpur. For a few months he drove 14 hours a day and he struggled with the ever lower incentives and last month, he decided to quit UBER and is now back to his old job; real estate negotiator. His girlfriend quit her job in a manufacturing concern and decided to rejoin as real estate negotiators too. So, is the market bad for real estate negotiators? Seriously, I believe this is the best time for
good negotiators to shine
. Many of their competitors would have quit….

According to an official survey from PropertyGuru’s Malaysia Property Market Sentiment Survey Report H1 2016, the years 2014 and 2015 were not favourable for the real estate industry in Malaysia. As for 2016, they are having mixed feelings. Many are expecting improvements as buyers have started thinking about buying a property again. 6 out of 10 are planning to buy a property within the next 6 months. This is despite the fact that 6 out of 10 saying that the market for 2016 is more negative compared to 2014. My personal view remains the same. Read here:
In a slowing market, sanity returns.How true

As per the survey, the top 5 reasons for people investing in properties are for higher yields on rentals (56%), good capital appreciation (55%), retirement planning (46%), better environment (46%) and to own a house due to affordable pricing (36%). My number one reason is for potential capital appreciation and hedging against the inflation. I believe even if I do not gain a lot, the house price increase would allow me to stay on top inflation numbers versus just savings. Location is key and 55% of all buyers already own properties within the Klang Valley. Yes, this includes me too.

Besides location, the other factors that influence the buyer’s decisions are:

59% – PSF or per square foot price;

58% – scope of future development in the area;

57% – size of property/unit;

57% – reputation of the builder;

57% – potential rental yield;

56% – security and safety of the location;

55% – loan eligibility;

54% – potential capital appreciation

The Malaysian public are also feeling more satisfied with the Malaysian real estate property market. This is because of the following top 5 reasons:

49% of people feel that there is a good long-term prospect for capital appreciation;

28% feel that the real estate market is stable and resilient;

27% feel satisfied because the properties are well developed;

20% of people feel satisfied in the face of rising real estate prices;

19% feel satisfied due to good financing option

The survey also revealed many reasons why people are not buying. I will not state them here. You can droopy propertyguru.com.my for the full article too. I just hope they realise that the best time to buy would have been
20 years ago but the second best time
 is always when we are ready and is able to identify a good one to buy. Happy following all these surveys as they dogive us some indications how the market is feeling right now. To many seasoned investors, they are happy with worsening markets actually. Happy investing.

written on 26 May 2016

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2014 Hotspots – 100% sure.

In every property fair, I noticed a lot of people love to listen to property gurus talking about hotspots. As long as you continue to benefit from their talks, please continue to listen and take action. I am just a small time investor like majority of you. Thus let me explain my point of view which I think may also be a point for you unless of course you have huge amounts of money to invest and can buy in every area  that the property gurus are saying. Allow me to explain a bit about hotspot, when you actually decide to buy and why you decided to buy.

Hotspots means that particular area is favoured by many. For an area to be favoured by many, it should have all the right ingredients. Well planned development, lots of nice properties versus squatters, a friendly mall nearby, schools and perhaps offices nearby for the working people and also the promotion by a lot of people that the area is a hotspot. Last but not least, connected by highways, LRTs, MRTs, KTMs etc. In essence, the news about it is also everywhere. You read about it online, you read about it in traditional media, all your friends are talking about it and every agent tells you to buy there because it is a hotspot. Correct? Yeap, that’s when that place becomes a hotspot and the prices? Raging Hot too.

However, have you ever thought about it objectively? Do you buy a hotspot for RM1,000,000 simply because everyone you know says it is a hotspot? Or do you buy it because you can see the MRT line being built which passed through that development. You also buy because the block next to it is already similarly priced today and you are buying it at a slightly lower price and after completion in 3 years, you think it will increase in price. Or you also buy because you simply needed to upgrade anyway and that particular place ticks all your requirements; mall for your wife, school for your kid and your office being just less than 20 minutes away? Suddenly, it is clear right? You bought the place because of YOU. Not because of any awesome presenters in a property show! One more question, if the hotspot is already extremely high in terms of price psf but a famous property guru shouted, ‘buy, buy, buy’, do you buy?

Hope everyone understands, property investment is not about which hotspots being bandied about by property gurus. Property investment is where you read, learn and do your own analysis based on all the actual facts on the ground. It is also where you buy because you have read about the particular area for many months or even years of its continuous development as well as future infrastructure being built there. YOU can SPOT the HOT area easily. I do love reading about where some of the hotspots are though. The predictions can help to pinpoint a few areas for me to do more research before deciding.

written on 16 March 2014

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2015 is the year of affordability

2014 showed that developers are able to launch some affordable properties when the market needed them to. It is not true that property prices must always rise as per what happened from 2009 till 2012. In fact, some of the luxury ones are now in oversupply. My personal term for luxury are those above RM 1 million as well as small units above RM600,000. Seriously, if these prices are sustainable I think the market must be on an uptrend. Since it is not, we shall see how long these buyers’ holding powers are. When things get rough, only the richer ones can stay tough.

2015 is definitely a year of property affordability where primary ones are concerned. Instead of very special developments, instead of lower density and instead of just larger units, the new launches are alsmot always above 1,000 units in the whole project, very slightly smaller than 1,000sf or above it by a little and almost always priced below RM500,000 as its starting point, if not lower. The areas are definitely slightly further away but the advertisements would tout the MRT connections. The closer and the more stations nearby, the better the pricing would be. Frankly, are these worth a premium of 20% or higher? Really? My personal opinions here:
The ‘Accessibility’ Popularity

Demand as usual remain strong and will be strong for years to come and every analyst or famous property gurus would tell you that. First-time home buyers are huge. Ask around your colleagues, how many have not yet bought one? Majority would answer you the same. Half would then tell you they are waiting and another half said it’s already too expensive. Both are reasons why if you are reading sufficiently and buy objectively, you would be within the top quartile of Malaysians who actually own a home to call their own.

According to Zerin Properties CEO Previndran Singhe in an online article, areas to watch out for within Greater KL are developments within proximity to MRT stations, LRT 3 stations and new highways namely Damansara-Shah Alam Expressway (DASH), Sungai Besi-Ulu Kelang Elevated Expressway (SUKE), the proposed Kinrara-Damansara Expressway (KIDEX) as well as the KL Monorail extension. Places to invest in would be Sungai Buloh, Kota Damansara, Taman Tun Dr Ismail, Damansara Heights, Kajang, Cheras, Old Klang Road (near KL Monorail extension) and Bandar Utama, Shah Alam and Klang (proximity to LRT 3 stations).

If you now want to know which is the best area to buy out of the above suggested ones, you think too much. He has done the homework for us. Just search out a few areas whom you know slightly more and view properties there. If you can afford one, buy one. Some of these areas remain affordable but please check out whether they are flood prone or not. Chances are these floods would get worse over the years instead of getting better. The message is clear; populations are ready to buy homes and urbanisation is continuing plus the first-time home buyers are a huge group moving forward. Question is always when to buy, where to buy and what to buy. Answer has to be found in you.

written on 26 Jan 2015

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2015: Fertility Rate dropped to 1.9 for Malaysia.

If you missed this, I think this is worth our time. However the political scenario may change, this new piece of statistics should get us planning for our future with more clarity. The current population of Malaysia is 30.4 million. Of course, we also need to include the many millions of legal and illegal foreign workers. The fertility rate is however decreasing. It’s only 1.9 in 2015. In other words, Malaysia is going to have lesser population if this trend continues. For growth, the typical rate should be 2.2 or higher. In fact it was as high as three just 15 years ago.

Yes, if you want to start debating about how the government is not doing enough, thus everyone could not support themselves and thus the birth rate is declining, then please look at Singapore. The fertility rate is just 1.1  So, please throw whatever political view out and understand, this is just how the modern society moves. Look beyond Malaysia to understand more. Since everyone is clear now, what would happen in the future? Well, the population is still considered very young which meant that demand for that property you have in your hand today should be quite safe. By 2020, 50 percent of the population will be aged over 29.9 years. Wow. This is a very good number, for those who already have an affordable property today, right?

By 2030, those aged 60 and above are expected to increase to 12.6 percent. Take a look at some of the retirement homes which are starting to sprout in Malaysia. Of course in countries such as Australia, the UK or the United States, these are already quite established. Read here:
Retirement Village – What and Why?

 Nope, do not rush into opening more of these retirement homes yet. We will have to see if Malaysians also love these too.

One more important point to note also would be that the current generation may not be getting married so early in the future. The chances of them having lesser babies are also very real. If you look at it this way, the implications would be that the size of homes in the future may actually shrink and it’s acceptable. Look at Hong Kong, with its 190 sf flats. Or look at those sub S$300,000 HDB flats in Singapore which are all smaller than 800sf today. The trend would be coming. A family of 3 or 4 may not want a 650sf serviced apartment but a single would prefer it.

So, if you are married, are you having or thinking of having more than 2 babies? Suddenly, we are clear that this fertility rate of 1.9 is definitely not sustainable. Another 15 years, who knows, it may be close to what Singapore is having today. As for Singapore, I think their goal of 6.9 million population by 2030 would have to be supplemented by lots of foreigners. I think majority may be Malaysians, who may be staying in Iskandar by then. We shall see. In the mean time, think property. The right one will bring you a happy ending story.

written on 2 Aug 2015

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End 2015, end of Fairchild’s Penang plant.

This was reported much earlier but recently many have posted this on their Facebook page. Fairchild Semiconductor’s plant in Penang is closing down end of 2015 and 1,000 workers including 500 full-time staffs losing their jobs is quite a huge thing. This number of 1,000 is however lower than what was reported last year. Then, it was said that up to 1,892 staffs would be affected. Hopefully this reduced number is because they were able to find new jobs. A search in JobStreet.com revealed that the number of manufacturing jobs are still aplenty. Do refer to image.

As reported, this is part of a worldwide realignment exercise. As the Penang plant is no longer cost-effective versus other newer and more efficient plants, it would be closed down. Penang’s plant closure would be joined by those in West Jordan, Utah in United States and Bucheon in South Korea. In fact, this will affect around 15 percent of Fairchild’s global workforce of 9,000 employees. Fairchild is also part of the eight companies which set up operations in Penang in the 1970s. The others include Advanced Micro Devices (AMD), Hewlett Packard (now Agilent Technologies), Clarion, Intel, Hitachi (now Renesas), Litronix (now Osram Optosemiconductor) and Robert Bosch.

One look at these group of eight companies has revealed that changes continue to happen. Thus, there is no such thing as a secure job. Oh yeah, for some of these retrenched workers, there’s no harm to venture outside of Penang too. Currently, manufacturing jobs continue to be available, not just within Penang but also in Kulim, in Iskandar and in Klang Valley. What should be emphasised should be how we use our earnings to secure a better future. The scouting movement’s motto is ‘Be Prepared.’ This motto says it all. Do we wait or do we take actions in advance? Savings is a virtue everyone must have but investment is the key to a comfortable retirement. Just do not “gamble” it all away.

written on 30 July 2015

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2016 – Personal focus, plans and strategies

A lunch mate (property group) asked me what’s my focus in 2016. Another Facebook friend, someone who loves to comment on my articles asked me what would I be doing in 2016 if I already have enough ‘ammunition’ today. I think for investment, it’s an ever changing game. Nothing in particular is right for a very long time because it should not be. Principle may be the same; buying undervalued or maximising returns or even long term rental focus etc. However, how we achieve this would keep changing. Reminder, we are investing, not just simply saving money. Without savings though, nothing happens. Here:
Idle money, savings in bank, unit trusts and more

In 2016, for property, I hope to buy a secondary property which can be easily rented out. Will hold it for at least till 2018 and will decide then what to do further. Perhaps if the property market is really extremely bad as per what has been predicted by all the property gurus, then I will sell some of my stocks (provided no losses) and buy two secondary properties instead of one. I have no intention to go beyond two properties within a year. These potential properties are not running away, I merely have to buy within my affordability and capability. Preservation of capital gains thus far would be of utmost importance. Criteria for checking out secondary properties? Here:
12 inspection tips on buying secondary properties

Where should we buy, if it is secondary property? If we are buying secondary properties, do buy in secondary areas. Skip all those Kiaras…or Bangsars… Buy as low price per sq ft as possible BUT must inspect the property properly and check its rental potential via online portals. How low is low? Well, I think RM400 per sq ft should be highest under current market condition. It’s cheaper, really. Here:
Buy secondary. 30-40% cheaper.

 For all new launches, I think the prices are closer or higher than RM500 per sq ft. When the whole market moves, that property you bought which is still looking good will also be moving up, slowly. Anyway, a RM350,000 property moving up 2% per year is still RM7,000! Please enlighten me if there are that many jobs which can give me an increment amount of RM7,000 per year. At 5% increment, RM7,000 up per year represents someone with a pay of
RM11,666
 per month. This covers less than 10% of all working people in Malaysia today.

Am I not buying more stocks? Actually, in 2015, I focussed quite a lot in stocks and bought just one property, in Sandakan Sabah. Thus, I think my quota for stocks would be full currently unless the ones I bought suddenly went up by 50 percent, then I will use the gains to buy into other stocks which is undervalued. My stock selection criteria? Better learn from those specialists instead. Here:
Good notes for stock investing from an investment guru

When we are buying stocks because we believe it will give us sudden returns, then please do not buy stocks. Any company would need at least one year to show their results, thus share prices should not suddenly jump. That’s purely speculation….

Thus, for 2016, my main focus would shift from stock majority in 2015 to property majority in 2016. Remember, we should always treat U.M.N.O with keen interest. “Uncertainty Means New Opportunities.” My good friend, Dr. Daniele Gambero said this just days ago, in reference to potentially the worst property market ever in 2016.
“Worst means also the best in terms of opportunities. Affordable it’s going to be the “forte” in property for the next few years.”
 Happy investing and Happy New Year 2016.

written on 31 Dec 2015

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2016 is the worst for property market, ever.

What do you think of the 2015 property market? For those who wanted to forget the property market of 2015, it may be best to forget 2016 instead. According to Dato Seri Gavin Tee, “2015 was bad, and 2016 will be worse.’ He said this is due to the likelihood of a weaker economic growth, tougher to obtain financing and even the loss of pricing power would meant 2016 would become the worst year for Malaysian property. He further elaborated that many potential buyers are reconsidering the safety of their investments in Malaysia due to the worries from ‘political and racial issues. He said that from his travels across the region and speaking to ministers, developers, investors and the media, this is the feedback that most Malaysians would not want to hear.

According to The Malaysian Reserve’s (TMR) report in October 2015, the property prices in the secondary market fell as much as 15% this year alone due to softer demand and the absence of speculators on the market. Tee said property prices would dip even further in 2016 in comparison to the last few years. In fact, nothing positive would be happening in the first-half of 2016. In fact it would be the lowest for the next eight years even though it is highly unlikely to be lower than the 2009-2010 levels. The lower prices does not however mean more would be buying. Basically, demand is going down. He said that the loan rejection has been as high as 50 percent for KL-based properties and up to 80 percent for Iskandar ones.

He recommended that the Malaysian government start to ease the cooling measures and help more buyers to buy a property. Read here:
Singapore may ease the cooling measures in H2 2016
. In fact without the help from financing policies, it would deter the local investors and this may transfer the wealth to foreign hands instead. By 2018, due to the rising material and land costs, developers will increase prices because the impact from exchange rate fluctuations would be gone by next year. He ended by saying that the best opportunity may be to buy in 2016. “If we miss it, we will miss it forever.”

Before everyone rushed to buy, especially to those who believe Datuk Gavin Tee’s assessment, do note that properties in many so-called hotspots remain to be on the high side or I would say ‘fully valued.’ The property prices may be falling but this is normally for the less popular areas and the reason for this drop is not because demand is dropping but more because the overall market sentiment. When the market is hot, all areas would rise even if some areas are faster. On the other hand, in a slow market, these less popular or secondary areas would be the first to be affected. Lower overall demand meant that for these areas, there may not even be much demand. Buy undervalued, at all times. When we do that, we can buy anytime and not just during the best, worst or whatever year. Happy investing.

written on 23 Dec 2015

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It’s ten year later next year. Financial crisis thoughts.

Reported in The Guardian was this particular statement,
“The Financial System is still blinking red. We need reform more than ever.”
 Do read to understand more yeah. In brief, some points put forward was that there are still arguments about the best way to reform the economy. The author does not like President Trump’s views. Here’s an earlier article.

Donald, do not touch the tough regulations

Some stats were also shared. For example, the financial sector in the U.S. creates just 4 percent of all jobs but contributes a quarter of corporate profits.

The writer reminded everyone that the father of modern capitalism, Adam Smith believed that the financial system existed to serve the the real economy. It should not be the other way round. (What this tells us is that a lot of these cheap money in the financial system were NOT lent to businesses which need them to grow their business but was borrowed by companies which are using it for financial related products and services and of course ever more startups focusing on the internet)
The article can be read here. Quite a lot of good learning.

What about our financial status since 2008? For the past 9 years, are our
personal finance blinking red?
I think paying credit card bills in full is one sign. Anyway, it does not need to be perfect but are things under control? Are we having properties which we are struggling to pay the mortgages every month? Talk to a good real estate agent for some solutions. A ‘hair-cut’may be needed if we have indeed overstretched ourselves. Do we sweat every time our car breaks down because our salary is not enough to cover unforeseen circumstances? Can we do something about it? Seriously, there are cars which are far cheaper to maintain even if some of our peers may ‘laugh’at us. Are we still renting an expensive place because we could not accept cheaper places? It’s always a trade-off but when we are still young, perhaps it’s easier to do. It will get harder to do as we age. 🙂

What are the reforms that we have done thus far where money is concerned? Not enough money to pay some bills but owns a place currently?

Renting out 1 or 2 rooms is not such a bad idea.

 Staying in a posh place with awesome looking people? It’s better to save much more and have an ‘awesome’ looking bank account instead. Have we moved to a much easier to maintain kind of car? Older cars do not mean higher maintenance fyi. There are new cars which have  more problems even if they may be better to drive! There are a lot of other financial reforms that we could do. It will strengthen our foundation so that we are doing okay even during bad / slow times.
Getting ready for unforeseen circumstances would be one of the best reforms we could do too.
 Medical expenses will be getting ever more expensive and not lesser. Education fund for the kids, perhaps? Happy ‘reforming’instead of stagnating. Cheers

written on 16 Sept 2017

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2018 IKEA Batu Kawan, RM8 Billion Development, 10 years to complete

Today, there are many Facebook sharing about IKEA Batu Kawan. The year is 2018. Many months ago, the announcement of IKEA got everyone excited for Batu Kawan. At that time, reports said that IKEA will open in 2020 as construction expected to start in 2015 and takes five years. Since 2018 is now officially mentioned, perhaps there is a possibility of it happening. Anyway, the middle point of 2018 and 2020 is 2019. We are already approaching end of 2014. Thus, IKEA is just 4 years away. So, would this piece of news be the tipping point for Batu Kawan? As it is, huge developers are already buying up lands in Batu Kawan. The largest land owner should be PDC. I hope PDC would continue to play an active role and not just selling lands for money.

As per report, Aspen Vision Land, IKEA franchisee Ikano Pte Ltd and the Penang Development Corporation (PDC) has signed an agreement for a RM8 billion integrated development in Batu Kawan that will be built around IKEA. In other words, the anchor tenant is IKEA and rightly so. If you have been to IKEA Damansara, it is full of people all the time, especially during lunch and dinner time. Somehow, Malaysians love the Swedish meatballs with jam!. Within the same project would be a mixed development of residences, offices, medical facilities, a 20-acre park, an international school, standalone retail outlets and an integrated central transportation hub for Seberang Perai.

Wait. IKEA said with this signing, it will start conducting impact studies and market surveys before it starts building. In his own words, Ikano Managing Director Christian Rojkjaer said that “We are opening up a full-sized IKEA store here so we will need an elaborate study to be completed first before works can begin. The first phase is IKEA and it will complete by 2018. The second phase will be the rest and it is estimated to take 10 years to be fully completed. Aspen and Ikano jointly bought 245 acres of land from PDC for RM483.95 million for the project.

I think the survey should be very positive. After all, within Batu Kawan itself, Penang will be building 11,800 units of public and affordable housing. Considering 4 to a unit, we are talking about a population of close to 50,000 just for these 11,800 units. I can safely assure you that between Batu Kawan or Damansara, Ipoh folks may be driving to Penang instead and after shopping can still drop by for the usual Penang food such as char koay trow, hokkien mee and cendol. Oh yeah, should you jump in and buy now? Well, if you are buying and staying there, by all means buy now. If you intend to buy a secondary property and wait, I think it will be some waiting. As for primary properties, I have yet to see any developments in Batu Kawan which my friends would WhatsApp me and said, ‘hey this is very exciting’. Of course, with this news about IKEA, I think the primary launches may be coming soon.

written on 4 Sept 2014

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2018 stock market crash? Warnings and optimism from JPMorgan.

Someone googled for ‘stocks collapse 2018’ and they found kopiandproperty.com. Two of them. Cool. Anyway, I googled for the same keywords and found under ‘News’ category that there was a recent article about it. The warnings plus optimism (same article) coming from JPMorgan. Since JPMorgan’s revenue for 2016 was close to US$100 billion, I think they know more than most of us. First of all, that full article from JPMorgan’s warning here. It’s in
businessinsider.my
 They even coined a term for it called ‘Great Liquidity Crisis.’ It does not say exactly when but it said that the unwinding of Federal Reserve’s massive balance sheet will be one likely cause. Basically, a collapse in liquidity.
(To explain in brief, since the 2008 crisis, the Federal Reserve has been buying government bonds, mortgage-backed securities and other assets to support the economy. It will STOP continuing the purchase. Well, as long as the demand from the private sector is enough to support, then it should be okay. JPMorgan is worried that this may not be the case)

This is what Marko Kolanovic, JPMorgan’s global head of quantitative and derivatives strategy said in a client note. “The timing will largely be determined by the pace of central bank normalization, business cycle dynamics and various idiosyncratic events, and hence cannot be known accurately.” A few other things may be adding up together to add to the severity of this liquidity disruptions. Currently however, everything seemed okay. Kolanovic said that conditions are fine and that currently, the market is backed by optimism over an overhaul of the tax system and a stock market rotation at the sector level.  Currently, the S&P 500 has just reached record highs and even earnings growth is growing strongly and this is the backbone of the 8.5 year bull market. He concluded his overall assessment with the same worry. That the Federal Reserve may just take an early decision to proceed with this.

From the many recent news, it’s clear that Federal Reserve is positive that the U.S. economy is on the right track. This was also strengthened by Yellen’s support for continuous increase in rates even if Trump does not really agree. Now, we could see that JPMorgan also feel that it may be better for Fed to continue supporting the market. Well, no time lines were stated though. My opinion is simple. Increase the rates if the U.S. economy is really strong. Stop all the rhetorics and thus all the useless anticipation and thus speculative activities in the currency market. By the way, if it is not as strong as was expected, the market better be OBJECTIVE. Till then, happy reading and following. Yes, I love Economics even if I have taken just a few modules of it. Cheers.

written on 15Oct 2017

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See you on 13th January 2018. Market Outlook 2018

Will 2018 be the year you start your property investment journey? What should you be focusing on? Are you ready financially? What should you be watching out for? Would the property market be sustainable? Let Miichael Yeoh share his views for 2018 with you. At the same time, I will share my personal views as a working professional like most Malaysians as well as someone who sees property investment as compulsory because it helps to hedge against inflation which is ‘eating’ away what we save every year.

GM Training Academy PLT
 will be organising the Property Outlook 2018 seminar.
Sign up here.
Feel free to read many of Miichael’s tips for those looking to ensure their mortgage applications have the highest chance for approval. During this event, Miichael Yeoh will also be launching the
Mortgage Health Report
which is the first in Malaysia. This report will assist loan borrowers in securing loan approvals. I am honoured to have been invited by the famous mortgage expert,
Miichael Yeoh
 to join him in sharing my personal views about property investment too. I will be sharing as a working professional who invests in the property market occasionally. Sorry that I will not be sharing on how to buy 10 properties at one go…
Sign up here.
 Readers of kopiandproperty.com, please do come and say Hi yeah.

The Details for the event is as follows:

DATE AND TIME

Sat, January 13, 2018

11:00 AM – 4:00 PM Malaysia Time Malaysia (Kuala Lumpur) Time

11am is Miichael’s talk.  2pm is my talk. See you!

LOCATION

Sqwhere Sales Gallery

108, Jalan Baru Sungai Buloh, Kampung Baru

Sungai Buloh

Shah Alam, Selangor 10460

*Light refreshment will be served

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My 2018 resolution? Family, Economy, Property plus kopiandproperty.

I disagree that we do not need new year resolutions. (since we would fail to achieve it?) We should have spare some time to just think it through and then decide what would be some of the things we want to achieve for the upcoming year. We need however to make it as SPECIFIC as possible. Hey, this was what I wrote for 2017.
Happy New Year and what about another resolution?

Within it, you may have read there were a few things I wanted to do well. I did not do too badly actually. 2017 has been kind to me for my career (I built up a totally new my regional teams in Malaysia, Hong Kong, Singapore and Thailand successfully) and I have since left to join a growing company as their new COO. Where family is concerned, I brought my lovely family to trips (18-20 of them….). Property wise, I managed to buy a secondary property and will start renting it out soon after I have fitted it with the needed furnishings.
I only rent out fully furnished.

Oh yeah, I achieved the KPI that my wife set for me as well. 2 overseas trips per year. Singapore, Perth.  (Haha… Singapore is another country mah….) Oh yeah, last but not least, kopiandproperty.com has hit an average of 43,500 visits for the last 3 months of 2017. Please clap because by reading this, you are contributing to it too.  THANK YOU.

What about 2018? Family first. Will MAINTAIN the number of trips so that we continue to have bonding time. I will not sacrifice my time for family by accepting job offers which offered more money but less time. My kids love to stay in hotels anyway and refuse to leave every time without fail. My son is even more ‘alert’. He refuses to go to the parking lot because he knows when we go there, the holiday is over… Haha. Actually in just few more years, both of them would be in primary schools and by then, these holidays may become less frequent. Must enjoy them now. I do hope that I can drive them to school everyday when they start their primary years. So, this is my 2020 advanced resolution yeah.

ECONOMY. Frankly, economy is the backbone to all my resolutions. I hope it continues to diversify as what has been happening for the past few years. Oil revenue will contribute lesser than 15 percent to the economy in 2018 which is very important. Bank Negara Malaysia staffs, thank you. Please keep working hard yeah. All the banks, please

continue to lend responsibly

because we do not need a mortgage crisis like some advanced nations. SMEs (including mine) must keep moving up the value chain. Doing more with less resources will be the battle-cry for a long time because we are not fighting some other SMEs here in Malaysia but the world. To all the working professionals, stop doing the same thing year after year… We
need to be competitive, else there’s no future.

PROPERTY.  I do not think I am able to afford another property in 2018 unless I manage to sell one. 30 percent downpayment needs time to slowly save up. So, in one sense it is so

restrictive to working professionals

but hey, this also meant that the market is
pretty safe for a long time yet.

Nope, I do not recommend buying without downpayment or buying a few units at the same time through some awesome ways. So, the resolution is to sell ONE for a good profit and use the proceeds for downpayment to two cheaper units instead. Perhaps one of the unit may be from the auction market.

kopiandproperty.com  View no less than 50 units for 2018 so that I can write even more tips for potential buyers too. Hire an intern writer who will can help to write more basic help articles. This intern will get 4-6 months of his / her time learning about the property market from the editor. (Me lah)  I think the market needs even more of these writers Aiming for 60,000 visits per month by end of 2018. PUBLISH a BOOK. (Yes… if Mr. Ho Chin Soon sees this line, I promise to publish it before 30th June 2018).  A few more in my mind but let’s just have these few first yeah.

So yes, these are my action-oriented resolutions. What’s yours? Feel free to write your comments or even write in to me. Sharing is caring. Learning is continuous too. Happy New Year!

written on 30th Dec 2017

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2018 property transactions? Sales up moderately, value up by single digit pct

I met this prominent property expert just a week ago in Penang. In our conversation, he reminded me that the Malaysian property market is certainly considered healthy even if nowhere near spectacular. It is far away from ‘about to crash’ situation. He is Raine & Horne Malaysia senior partner Michael Geh. He was quoted in an article in
TheStar too. Please read the full article here.
He was sharing his projection for the industrial units numbers.

He based his projection on the National Property Information Centre’s (Napic) third-quarter 2017 report. The industrial units in the country increased by about 33% or 1,639 units in the third quarter versus 1,224 units in the second quarter. When compared to a year before, the increase is about 18% from 1,320 units. He said, “This shows that there is still investment coming in for industrial properties. The value of industrial properties transacted in the third quarter increased slightly by about 1% to RM2.62bil from RM2.6bil in the second quarter.”

He shared that the the industrial unit sales are now happening for units with smaller built-up areas and this explains the the reason for the decline in the value of transactions. Michael shared that the interest for industrial properties should continue in 2018 but the strong double-digit percentage increase in transactions in the third quarter may not repeat. He shared that the country had an overhang of RM1.18bil worth of industrial properties, at about 900 units, at the end of 2016. One reason for this number is also because industrial properties recorded the lowest number of transactions for 2016 since 2010. He added, “There would be pressure on pricing due to the overhang, which would take some time to clear. This is why we are projecting a moderate growth for sales.” He said the Digital Free Trade Zone (DFTZ) would help as it is scheduled to complete in 2025 and the hub will handle up to RM300bil worth of goods in the Asean region.
Full article in TheStar here.

Where business confidence is concerned, this is
one recent article in TheStar.
 “Business confidence among Asian companies rose in October-December to the highest in almost seven years due to robust consumption and global trade, a Thomson Reuters/INSEAD survey showed. The index for Malaysia weakened to 64 from 75 as respondents expressed concern about consumer sentiment. A reading above 50 indicates a positive outlook.” Meanwhile the consumer confidence remain stable for Q3 2017. The recent article in
TheStar quoting Nielsen here.
 “The Malaysian consumer confidence remain stable in the third quarter (Q3) of 2017 with an index score of 93 percentage points (pp) – down one point compared to Q2 2017, according to the latest Global Survey of Consumer Confidence and Spending Intentions released recently by Nielsen.”

Okay, it’s quite clear. We have

oversupply for both the residential

and industrial units. Both would definitely take some time to clear but as we can see from all the projections thus far, there are no signs of a crash coming up. What’s your feeling about 2018 then? Consumer sentiment actually starts from all of us. Let’s hope it’s a positive 2018 ahead. Positive sentiment will slowly come back by then.

written on 26 Dec 2017

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