110 units, 75,851 sq ft and bids of S$51.07 million

We often hear of small pieces of lands within the KLCC vicinity being sold for ever higher prices. The reason is because the development be built on them would also be offered at prices higher than the sky or at least the clouds. Recently, there is one small piece of land in Singapore where bidding was aggressive. 9 bidders submitted their bids for a piece of land smaller than 2 acres. Yes, it is in Singapore where the land scarcity issue is much more intense compared to even the KLCC areas.

According to an article in PropertyGuru Singapore site, the Urban Redevelopment Authority (URA) announced that it received nine bids for the 75,851 sq ft site at Jalan Kandis in Sembawang. A subsidiary of Tuan Sing Holdings submitted the top bid of $51.07 million. This small plot of 99-year leasehold site could yield about 110 units. Desmond Sim, Head of Research (SEA) at CBRE said, “The palatable quantum offsets the challenges of this untested site, which is probably the reason for the strong showing by the bidders.”

He further added that once completed, the condominiums at this site would be the only high-rise development within a 2km radius.The site is just next to the Sembawang Park and within proximity to established schools and the Sun Plaza shopping mall. URA will decide after all the bids have been evaluated. Bidding has closed on 7 April 2016.

Let’s do some conservative calculations about the potential prices the 110 units? Assuming the land cost is 20% of the potential Gross Development Value (GDV). This meant that the potential GDV is S$255 million. Based on 110 standardised units, this meant that it’s around S$2.3 million. What can we buy for S$2.3 million currently? Some choices attached, as per information from property guru.com.sg There are just two choices in the Sembawang / Yishun area. I think the estimation may just come true. Let me try to follow this piece of news and report to all then. Buying is not within my affordability but I think great to know right. Happy working!

written on 11 Apr 2016

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1,123 applications approved. Ambank will be 12 pct ‘lighter’

When a company decides to cut costs, they usually start with people. This is because it’s not possible to sell partial of its fixed assets and which is often needed to continue its operations. Besides hiring back staffs may be much faster than to order a new machinery for example. All over the world, we see the trend repeating itself. With advancements in technology, fewer people would be needed, especially banks. National Australia Bank (NAB) retrenched 1 out of every 5 employees and they have started leaving the bank beginning last week. That’s a 20 percent cut as more automations meant fewer staffs are needed. NAB’s annual net profit announced in November 2017 was A$5.3 billion (RM16.14 billion). Here’s that
news in abc.net.au
 Before everyone panics, it’s not all gloomy with the banking though, if your skill is what they need. At the same time that NAB is letting go 5,000 staffs, they are hiring 2,000. These 2,000 are the highly skilled in finance people. Most of the time, hiring new meant that there’s little time needed in retraining the existing staffs, assuming the skills could be taught.

In the UK, 5,000 staffs of HSBC lost their jobs out of a total of 45,000. Another 2,000 lost their jobs in HSBC in the U.S and a few other countries. The bright spot is, HSBC continues to hire in this part of the world. It continues to hire in Hong Kong even if the overall number of staffs worldwide has dropped 5 percent.
Full report here.
Barclays Plc may be letting go up to 100 senior staffs at is investment bank due to its underperformance. I think salary wise, these 100 senior staffs would be worth a few hundred lower paying banking jobs.
Here’s that report in Bloomberg.
 (If all these staffs who lost their jobs are unable to get back a similar paying job for a few months, their savings would be depleted and some may start skipping their mortgage payments. Hopefully these do not happen since the current job market is pretty robust based on the usual unemployment rates)

Over in Malaysia, a total of 1,123 staffs applied to be given the Mutual Separation Scheme (MSS) by AMMB Holdings Bhd. This is 12 percent of the bank’s workforce which is pretty significant. The savings from this, RM80 million per year will be reflected from the financial year ending March 31 2019 onwards. The payout for this MSS is estimated to be RM128mil which will be accounted for in the fourth quarter of financial year 2018 Q4FY18.  The banking group announced a net profit of RM878.7mil for the nine months of FY18. The savings will help the profit numbers in the future. CIMB Research has a ‘buy’ for AMMB because of the attractive valuations of FY19 price earnings of 8.6 times  and price t0 book value (P/BV) of 0.7 times. its target price is RM4.30 while shares of AMMB closed 4 sen lower to RM4.10 at mid-day.
Here’s that full report in TheStar.

Please always keep track of people losing job because this is one of the indicators of the property market.
Without a stable job, there’s no way people

could buy a property or even pay for their existing mortgage(s). If you like banking stocks, perhaps this is one that you may buy and hold since savings from this MSS would be continuous moving forward and not just for 2019. Happy investing.

written on 1 Mar 2018

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11,672 borrowers managed to restructure their debts

These are just those who sought help from The Credit Counselling and Debt Management Agency (AKPK). In a news report in
Bernama
, AKPK said that as at Oct 2016, it has successfully solved some 11,672 management and financial restructuring cases amounting to RM476.6mil through its Debt Management Programme (DMP). DMP is a programme by AKPK which will help borrowers to restructure their housing, vehicles and personal loans including outstanding credit card balances. These are the successful ones. Another 97,215 did not make it and became a bankrupt. The numbers are as at September 2016. Scary? Well,   we should not be too alarmed these days when we look at how the youths are spending their money. It’s as if tomorrow will never come.

Of those declared bankrupt, 22,581 individuals were from Gen-Y and there were 1,157 cases involving those below 25 years of age. Major reasons for the bankruptcy was failure to repay loans for hire-purchase of vehicles, which constituted 27.6%, followed by personal loan defaulters at 22.8% and housing loan defaulters which made up 19.4%. No prizes for guessing if they overstretched themselves. Two major reasons were cited for the potential for one to become a bankrupt; lack of education and poor financial planning. These contributed to the failure to control their finances. According to the Asian Institute of Finance, the financial education level among youths is low, with only 28% of them confident of managing their finances, while 58% have moderate financial knowledge.

If I could wish, I hope that all universities would provide some financial knowledge to their students before they graduate. I believe very firmly that this is not the time toby blind, deaf and dumb about financial awareness. Read here
Lacking in financial awareness today? Peril awaits

If I could ask, I think everyone should keep reading more and start sharing all the free resources that they have so that more people can benefit. I still have high confidence that once people are aware, the chances that they would become bankrupt is lower. After all, we want to look good in front of our peers but if we overspend and become a bankrupt, I think that smartphone in our hand is nothing to be of much help. Cheers.

written on 6 Dec 2016

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11,900 into Singapore and 50,000 out into Iskandar everyday.

I waited for over an hour for a friend when I was in Singapore one month ago. She apologised profusely when she arrived saying the jam was bad. Area was Bugis. I always thought that in Singapore not many people would drive. To my surprise, I found out a lot of them actually drive in the evening because the ERP stops after 8pm. I have also wanted to drive into SIngapore and I felt that I should be quite special because not many Malaysian cars would be in Singapore. I think I may be wrong again. On a daily basis on weekdays, 11,900 foreign registered cars enter Singapore and on the weekends, 13,600 cars. The free entry for these cars start only from 5pm and soon, it may start from 7pm. Majority of these cars would not be going to the newer suburbs. Thus I know why my friend was late for nearly 40 minutes from her estimation. All of these cars would be concentrated on the popular areas only. Shopping, business, romance, who knows but jams are happening!

The most significant about this number is that considering each car carries 2 passengers, that’s additional 24,000 Malaysians travelling into Singapore on a daily basis. As for Singaporean cars travelling into JB, that’s 50,000 on a daily basis. That’s a minimum of 100,000 travellers into Malaysia. Irregardless of the reasons for their travel today, within the next few years, their reasons will most likely be increasing and so would be the number. The number of Malaysian cars travelling into Singapore may not change that much but the number of cars from Singapore into JB would definitely increase. On a weekend, besides the casinos which the Singaporeans cannot travel to, the closest place for a family trip is JB or Iskandar. For leisure, for business or even a vacation in their newly purchased condominium complete with swimming pools and all other facilities. Come on, let’s get real, for the weekends, not many Singaporeans would want to stay and watch TV in their HDB flats, especially if going to JB becomes faster and easier plus some of them actually own a condo which is cheaper than their HDB flats.

I always believe that with a higher integration between both sides, it would benefit both countries. This is different from some of the arguments on which side would benefit more with another link, with the upcoming High Speed Rail etc. When I was in Osaka a few years ago, I was informed that just between the ‘old’ Osaka and the ‘new’ Osaka, there were eight links! Development does not happen to any place without people. People cannot travel if there are no links to link them to that place. The current two links between Johor and Iskandar is definitely not enough and at best, just a beginning. More needs to happen. There’s no way Singapore can continue to grow by just relying on within. there’s also no way that Iskandar can be successful without a strong participation from Singapore. We should all remember that. 🙂

written on 15 Nov 2014

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12 Great Reasons to Invest in Real Estate

One of the smartest ways to make money is to invest in real estate property. By doing so, you get to socialize and meet people and at the same time, make money buying profitable assets. There are lots of advantages of investing in real estate and here are the top 12 reasons why shouldn’t miss this chance!

1. Real estate properties are available to all

Practically anyone can invest in real estate. Look around you, there are plots and houses everywhere. Wherever people can live, real estates must be there for sale. It’s just like food and clothing – a very common human need. People need a place to live and survive. In Malaysia, you can get a small piece of property at as low as RM50,000. So it’s pretty much affordable as well.

2. It is the proven way to become RICH

Find the richest person you know and there’s a more than 50% chance that he/she is involved in real estate business. Most millionaires of the world have a large number of real estate assets. They might make their first millions from business venture. But later on, many of them park money in properties. Why do they invest in properties instead of investing in something else? If these people can make a fortune through their real estate investments, why can’t you?

3. Get More with Less

The leverage you get by investing in real estate is another important reason why it’s a very good idea. Leverage can be defined as the state where you get to control a big investment at a very low initial capital. In Malaysia, you can pay RM 10,000 as down payment for a residential apartment priced at RM 100,000. This leverage is something that you won’t find in any other type of investment. Every dollar of your own money allows you to borrow nine dollar to finance the purchase.

4. Appreciation of property over time

The price of a real estate property always increases with time due to the inflation effect. Inflation will never cease and the prices of materials will keep on rising as time flows. Real estate properties are constructed from building materials which become more expensive day by day. As such, the price of the property will rise too! For the last 10 years, the price of properties in Kuala Lumpur has been increasing by 5-7% every year.

5. Properties are assets that can generate income

Your real estate properties can generate income when you’re renting it to someone else. When you have a tenant living at your apartment, the tenant will pay for the mortgage. That means, you can gain profit even though you haven’t paid the full payment. One of the most amazing things about investing in real estate is that your tenant will share the loan burden with you, along with providing you some profit. When the loan payment is completed, the entire money earned by renting your property goes to your profit account!

6. Rental income is inflation friendly

Due to inflation, prices of commodities will rise and this will not adversely affect your rental income. That is to say, rental income is very inflation friendly. Inflation will produce more people who cannot afford to buy their own homes and they will choose to go for rentals. Instead of owning a place to stay, they will be forced to rent and thus, rental incomes will become the rice! Although, this is not very good news for the tenants, it’s great news for real estate investors.

7. Gain from refinancing

It’s not required to sell your property if you want to enjoy some profit. That happens in the case of other things like gold or silver. As in property investment, you can enjoy the profits even without selling your property. This can be done by refinancing. Without selling your property which was purchased at a lower than present rate few years back, you can gain the additional profit corresponding to the current price by refinancing your property.

8. Total control on properties

You will always have absolute control on your real estate properties. You have the flexibility to choose your tenants. For dealing with business tenants, you can buy commercial properties. For residential tenants, you can purchase an apartment and put it on rent. You can control the furnishing, maintenance and any sort of renovation in your property and sell it at a higher price, making a sizeable profit. That means, you can also control the profit that you can make from your property, other than the market sentiment which is out of the control of anybody.

9. Tax benefits

Being a landlord, you’ll have to pay income tax on your collected rental. You’ll have to pay the taxes and your net rental income will reduce. But just like any other business, there are a lot of ways in which you can reduce these taxes and acquire the advantages of being a landlord. Mortgage interest quit rent, assessment and maintenance are tax-deductible expenditure. Moreover, if you have a few properties, the rental gain from one property can be offset by the rental loss on the other property under your portfolio.

10. Stability of market prices

For stocks and some liquid investments, the price may fluctuate within days. Unlike stocks, real estate prices are quite stable. Property valuation changes over a longer period of time. Transaction just doesn’t happen as frequent as stocks. So you don’t have to check and monitor your property value every single month. Do it once a year is sufficient to know the value of your portfolio. Besides, the price for the same type of property in the same neighborhood may differ depending upon the buyer and the desperation of the seller to sell.

11. Investment that forgives you the most

Obviously there will be some bad investment no matter how careful you are. But when it comes to real estate properties, the bad investment can turn good provided that you have the capacity to wade through the tough time. You may buy a property at a wrong place and at a wrong time. But a time will come around when you can actually make a very good profit out of it. It might take 3 or 5 years, but the profits will eventually show up. Sometimes, even your worst decision will bear fruit someday.

12. Great for people with good communication skills

Are you a people person, incredibly good at communication and negotiation skills? If you are, then real estate can be the best possible investment for you. In a real estate business, you’ll have to deal with different types of people and convince them to buy or sell properties, convince them to finance your property, convince them to make a better deal for you. If you are such a people person, investing in property is exactly what you need to do. There are lots of reasons why one should invest on real estate properties in Malaysia and these are the strongest ones. Share with us your thoughts in the comments section below!

This is a guest post by KCLau, the best selling author of Top Money Tips for Malaysians. His popular personal finance blog is one of the most visited websites in the financial blogosphere. He also hosts regular and
free financial training online
 (
http://kclau.com/webinar
) featuring different financial experts. You can follow his latest updates by visiting
www.KCLau.com
.

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12 inspection tips on buying secondary properties

I think I will only be looking at secondary property market for a while. I am very sure there are lots of gems in terms of new launches but I told my wife that let’s concentrate on secondary property market since the prices are still quite attractive today. Plus the rental yield is still positive. Sorry, I no longer aim at 6% or 5% or whatever some people are saying. For 2014, if the yield is positive, I would be interested. Personally, my time frame is 5 years before I decide if I want to continue to renting it out sell for potential capital appreciation. Before I buy the secondary property, I would personally do the following.

1) External paint. If the external paint for the condo is worn out, with algae everywhere, I would think thrice. Reason being, repainting the whole condo takes a huge chunk of the reserves from the management fund and not all condos may be able to absorb that or they may resort to a cheap paint job which meant repainting is needed just 2-3 years down the road. A good paint job lasts easily 8-10 years.

2) Facilities. Check the conditions of all the common facilities. Normal wear and tear is expected but if you see the sign ‘ROSAK’ in every single facility that you inspect, I think you have your answer. There’s no need to view the house.

3) Walk around. Do you feel comfortable? The guard house (dilapidated?), the guards themselves (old and frail?), the environment (dirty?), the people who’s staying there (foreigners?), the cars which are parked there, the corridors (too narrow?)?, the lift (smelly?) If majority are negative, there’s no need to view the home.

I would view the home if it passed the three above.

4) Corridor leading to home. Too dark? At the very end of a very long dark corridor? Lights not working but the agent said the management will fix it?  Sorry, please stop here. Are you sure you want your wife or kids to walk home by themselves and you happen to be not around?

5) The first view into the condo.  Ceilings should be at minimum 9.5 feet for a condo. Use the door as measurement. Typically door is 6 feet.

6) The flooring. Signs of cracks? Too old fashioned? (Ask them for discounts)

7) The ceilings for rooms, toilets, any leaking signs detected? While these CAN be fixed but it will not be easy unless you know the neighbour on top floor who’s willing to spend money to fix something which affects YOU.

8) Built in cabinets / closets. Are they in good condition? If it’s in bad condition, better ask for discounts as you need to redo them.

9) View from the balcony, if any.  Don’t tell me you can’t see anything except for a tall bald hill right in front. From Feng Shui perspective, this is not good. For your own safety, there’s a little chance for potential safety hazard too.

10) Unless you are buying a drying machine, ask where will you be drying your clothes. It’s best if there’s sun. If none, deduct some points and get ready to buy TOP or DAIA or Breeze. (Haha…. they are good enough for indoor drying)

11) Room layout / arrangement. Too small? Layout not to your liking? Strangely shaped? Remember, you will be using it every single day.

12) Cooking arrangement. Only for those intending to cook. Can you cook freely without making your home ‘oily’, ‘smelly’, and ‘dirty’? Wet and dry kitchen possible? At least a door which you can shut out the kitchen from the living room when you are cooking?

13) I said 12, right? Why (13).  Well this is where you make your choice whether to buy or not to buy. I think it’s best to view a few more before you decide. For secondary market, you have this flexibility. You do not need to buy something you did not see yet.

written on 17 July 2014

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12 International Schools just within Iskandar?

One of the many goals of Iskandar to be an international education destination. It aims to have 12 international schools. While I am not so sure of the criteria for these international schools but assuming all these schools takes in 2,000 students when it is full operating, there would be 24,000 spots available. The market is pretty huge once you consider the difference in exchange rate, especially if the final qualification is the same whether the student did it in Singapore or in Iskandar. Besides that, it is not really working if we intend to attract expats but there are no schools available for the children of these expats.

At this moment, there are seven that I found online. They are Marlborough College Malaysia, Raffles American School, Sunway International School, Tenby International School, Austin Heights International School, Pegasus International School, Excelsior International School, R.E.A.L Schools, Cahaya Campus. Some were part of the developer’s integrated package while Marlborough College is a very famous ‘branded’ school from the UK. During its first intake, thousands submitted applications and they do not only come from Malaysia but from overseas too.

I am very positive for these international schools. Truth is, even if everything is the same, it is much better to be studying in Iskandar because the campus would definitely have much better facilities and even fields. Those in our neighbouring country may not have the luxury of space. Thus, it is very important to get this right. Perhaps even more information and transparency is appreciated. Number of students already enrolled, who are they, where they come from and more. This would give confidence to attract even more new students into these international schools. I look forward when the 12th international school has opened its doors and the new target is to hit 24 instead. Cheers.

written on 2 May 2015

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12 tips on inspecting condos

This article was published in New Straits Times on 4th August 2015.

When we are thinking about our first property, it may be wise to also consider the secondary ones today. Just look at the prices of new launches of today, then browse online and get to know the available choices for the secondary ones. We may realize that the prices of these secondary units are still lower or attractive when compared to the new launches. If this is true, then why are secondary properties still not popular among the first-time buyers? Most of the time, they are worried about the upkeep of such units. The questions of ‘What Ifs’ are definitely much higher than buying a new one. If we are really considering a secondary condo unit, what should be some of the considerations? Let me share 12 inspection tips.

1) External paint. If the external paint for the condo is totally worn out, I would think thrice. Reason being, repainting the whole condo takes a huge chunk of the reserves from the management fund and not all condos may be able to absorb that or they may resort to a cheap paint job instead which meant repainting is needed just a few years later. A good paint job lasts easily 8-10 years if not more.

2) Facilities. Check the conditions of all the common facilities. Normal wear and tear is expected but if we see the sign ‘ROSAK’ in every single facility that we inspect, I think we have our answers. There’s no need to view the property.

3) Environment. Walk around. Do we feel comfortable? Is the guard house in bad condition without even a proper fan or ventilation system? Are the guards looking old and frail? Are there rubbishes in the compound? Are there way too many foreigners walking here and there? Do note that we have to stay there for a long time. If we do not feel comfortable even from the beginning, how are we going to stay there for years?

I would view the actual unit IF it passed the first three questions above. The next 9 as follows:

4) The corridor leading to unit. Is it dark, without proper lighting? Is the unit at the end of a very long and dark corridor? Yes, in our mind now must be a horror movie setting. If we think perhaps it’s just that floor, then try a few more floors. If just that particular floor, perhaps it’s temporary. If it’s dark all the time, are we sure we want our wife or kids to walk home by themselves through the dark corridor everyday?

5) First impression of the unit. Ceilings should be at minimum 9.5 feet for a proper condo. Anything lower, even if the project is known as a condo, I would only think of it as an apartment and will only pay an apartment price for it.

6) Flooring. Are there signs of cracks? Is it too old fashioned? This is not a deal-breaker. When we find cracks, ask for a discount. Whether we decide to change the tiles or not is another matter altogether.

7) Leaking signs on ceiling. Check for any leaking signs on all ceilings. These can be fixed but it will not be easy. Yes, I have personally fixed 2 different condo units for which the ceiling was showing water leakage signs. Somehow, I managed to talk nicely to the two different owners upstairs.

8) Built in cabinets / closets. Are they in good condition? If it’s in bad condition, better ask for discount as we need to redo them. Even when it’s in a good condition, decide if we like the design or not. Preference is a subjective matter.

9) View from the balcony, if there is one. If the balcony is facing the wall of another block, it is likely to affect our emotions in the long run. If it’s facing a bald hill, there may be potential safety hazard when it rains heavily.

10) Drying area. Unless you are buying a drying machine, ask where will you be drying your clothes. It’s best if there’s sunshine. If there are none, perhaps drying machine is a better choice than to have clothes which smell. It does not matter that the sun shines into the living room. That can be solved with a good curtain.

11) Room layout / arrangement. Is the master-room too small? Are there way too many unnecessary corners? Can we shower comfortably where size is concerned? Is the layout to our liking? Remember, we would be using it every single day.

12) Cooking arrangement. For those intending to cook, can we cook freely without making our home oily, smelly, and dirty? Are there separate wet and dry kitchen areas?

If the unit passes all these 12 inspection steps, it is better to view a few more before we make our decisions. We can also check online for some comments but always treat comments with caution because not everything being said is true. For secondary market we have the advantage of seeing first before buying. We do not need to buy something we have yet to see. In fact there’s no need to wait for a few years for that home sweet home.

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120% bank loan possible?

When I was driving home from Sitiawan to Ipoh home today, I saw a huge banner for a new development project saying that a 120% loan from the bank can be arranged. I believe banks no longer give more than 90% and it is even based on your net income. In fact for commercial, typically it’s even lower. So, the question is, did I see wrongly? I do not think so, it was clearly printed in huge bold letters. I checked online and I think it’s not clear what’s the maximum that banks can lend when it comes to commercial properties. Question is, should the banks lend so much, even if it is for commercial property?

Imagine the property we are buying is RM500,000. Banks lend us just 70%. This means we must come up with 30% which is not an easy task if we do not have sufficient cash. Thus, banks are lending only to those who really qualify. It’s even based on our net income. As for bank, when they lend u just 70%, it helps them to manage their risks too. If the value of the property is really RM500,000 and we are unable to service the mortgage, the bank can still auction off the property and the 30% margin that they have is definitely enough for them not to lose money in the auction.

Now imagine banks lend us 100%. We need not pay anything at all. Thus, anyone can borrow money. Sounds familiar? Yes, it happened in US not too long ago where those who just do not qualify also got the loans based on the potential future price increase. It was like a never ending story. Coming back to Malaysia, if we are loaned 100% and we stop paying, the bank can choose to auction of the property. However, with all the fees and the fact that the banks may not even get 100% for the property, it means every time someone defaults, the bank loses money. Now imagine thousands of buyers all doing that? I don’t think we want to imagine what may happen with a 120% loan.

I seriously think that even when you see such an advertisement, do not be too happy and simply sign the SnP. If you can sign, so can many thousands other unqualified borrowers. This ensures the potential bubble that some people are talking about becomes a real bubble in the near future. Buy what you can afford, not the future earnings that you have in mind. As for any bank offering such a package, I think they should be warned seriously.

written on 1st Feb 2014

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Alternatively read:
Before you do any investment, maintain your FD first

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12,000 jobs to go. Intel refocusses itself.

Retrenchments, large scale ones are always frowned upon. However, with changing trends, these corporate restructuring will be more and more common. Perhaps more importantly is to understand what could we do should the job we currently have is lost forever. Increased globalisation meant organisations could choose to relocate or locate their plants where the costs are lowest. For businesses suffering from a decline of an industry, it has to quickly refocus itself or it may disappear in the future. One piece of bad news was reported in many medias today.

Intel announced that it will be cutting around 11 percent of its global workforce. This is supposed to be up to 12,000 staffs. This cut is meant to help Intel refocus its business from a PC company to one that powers the clouds and billions of smart, connected computing devices. Most of these affected employees would know their fate within 60 days while the rest will wait until 2017. With such a huge number, my friend working in Intel has this to say, “12,000 is a big number. It will start from mid 2017 onwards. It will definitely affect Malaysians.” Most of Intel’s plants are in the United States though. This restructuring may see Intel save up so US$1.4 billion next year.

Intel is projecting reduced revenues next year. The PC market is not recovering. (I have not heard of a single friend buying a desktop for many years.) It said that it will have to focus on making microchips for growth industries such as “data center, [Internet of Things], memory, and connectivity businesses, as well as growing client segments such as 2-in-1s, gaming, and home gateways.” Intel is also trying to enter the mobile devices market, challenging the dominance of Qualcomm Inc and Samsung Electronics Co. It announced, that the restructuring will “accelerate its evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices.”

Reading between the lines would reveal that Intel is not suffering from huge losses. It is refocussing itself into growing sector instead of trying to struggle in a declining one. The staffs who lost their jobs have no choice but to flexibly move to the growth ones as stated by Intel. Jobs growth are still accelerating and not reducing and the growing sectors may be suffering from talent shortage while surplus talents in declining industry will find it hard to get a new job. The change really do have to begin with us. Read here:
Online is future, thus more job cuts.
 Remember, during good times, invest so that when the bad times come, we have something to fall back on. Hopefully, the number of affected Malaysians would be as low as possible.

written on 20th Apr 2016

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1,202 units of PR1MA in Kajang, to be completed in 36 months

Another good news on affordable units by private developer and PR1MA. MKH Bhd and PR1MA Corp will be jointly undertaking a mixed development project in Kajang with a gross development value of RM464 million. Do you qualify for one? Are there options to choose? Take a look at some of them here.
http://www.pr1ma.my
 One can also apply too if we meet the qualifying criteria. The project would be for a 1,202 units of stratified residential units (apartment, I believe). There will also be a commercial units too. I think the commercial units would be open for everyone and typically helps the profit numbers a bit.

MKH Bhd, in their filing with Bursa Malaysia said that PR1MA had allowed its unit Metro KL City Sdn Bhd to develop 1,202 units of stratified residential units together with commercial area on PR1MA’s freehold land over four years. Metro KL will have a 70 percent share of profit and cost and is expected to make an initial capital and investment outlay of RM38mil, to be incurred for start-up costs and preliminary works. Once all the conditions for the joint development agreement is fulfilled, the project will be completed within 36 months. Location is pretty strategic in the sense that it’s nearby public transport. It is near the existing Kajang commuter train station and is linked to Kajang MRT station which is under construction. It is also near to New Era University College, primary and secondary schools, banks, eateries, shopping complex, and hospitals (within 1km to 2km radius).

Based on google map, if one were to drive, it’s around 40km and duration is around 48 minutes. Of course, to those working nearby KLCC, driving would not be the only choice available. Perhaps
MRT may be a better option in the future,
 when it’s completed. Another potential option is now available. Will keep following this news since it’s an affordable one. I seriously do believe everyone should have a roof over their head which they own when they retire. Remember,
 we can always rent in the future
, when we are retired and does not need to be staying nearby our working place. Cheers.

written on 21 Nov 2016

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PR1MA: 10,000 units to be delivered in 2016?

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12th highest growth in the world – Malaysia property market

I read the original report in
http://www.propertyguru.com.sg
.  According to the latest 12-month period ending September 2013, according to the Knight Frank Global House Price Index, the property market in Malaysia grew 10.2% to finish as no.12 best performer. The top performer is Dubai, with 28.5% rise within 12 months!  China was 2nd with 21,6% up and Hong Hong third with 16.1% up.

According to Knight Frank’s analysis, “The index now stands four percent above its previous peak in Q2 2008, and 12.7 percent above its financial crisis low in Q2 2009. Prices rose on average by 1.5 percent in the third quarter, taking annual price growth to 4.6 percent.”

I do not know how they get the number of 10.2% but I think 10.2% is considered quite high. No wonder so many cooling measures were put in place. 🙂  I think the results are starting to show, especially with the slowing down of the transactions except for Iskandar up till October. Waiting eagerly to see how much the market has slowed down, especially in Iskandar since foreigners now have many restrictions when buying; over RM1 million properties only as well as selling their properties to only foreigners.

The only good news may be Medini which has since been exempted but the catalyst would definitely be the bullet train as well as more details on the RTS emerging.

written on 15th dec 2013

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Gloom & doom in property market

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Home buyers? 13 MORE stations from Kelana Jaya LRT Line

The
public transportation
 is improving in the Klang Valley, though slowly. The question is, are the home buyers starting to embrace these changes? Are their minds STILL fixated only at the few hotter areas and ignoring all the rest? Even when a new LRT station is opening on
 June 30th 2016
? Take a look at the image for all the new 13 stations in the Kelana Jaya LRT extension. Many names are not that familiar and these should be some of the places for consideration especially for the middle class which are saying homes are expensive but continuously spends on many other stuffs and
refusing to buy at newer areas
. Especially a certain generation but let’s not generalise… 🙂

The new stations include: Lembah Subang, Ara Damansara, Glenmarie, Subang Jaya, SS 15, SS 18, USJ 7, Taipan, Wawasan, USJ 21, Alam Megah, Subang Alam and Putra Heights Integrated Station. Please do not only look at the name. Sometimes, the names are not familiar. It does not matter. Do we need a
home or do we wish to continue renting
? Choice is ours to make. We can however take the opportunity and take a ride. Know where these stations stop, work backwards and start browsing the online property portals for properties nearby (within 10 minutes) the stations. Chances are, there are gems waiting to be discovered.

In fact, there are more good news. These lines would be served by new-generation trains that will have better air-conditioning, bigger windows and an electronic passenger management chart. These trains were imported from Canada and they are called Bombardier INNOVIA Metro 300. A total of 14 new trains would start in June while another set of eight trains would be brought in later. The great thing about these LRTs is that it will reduce the number of new cars on the road. Perhaps reduce the numbers too. A 2-car train can carry 472 passengers while a 4-car train can carry 922 passengers. In other words, a few hundred cars can be taken off the road just per journey.
Time to embrace the culture of walking a bit to take the public transport.
 It’s healthier and easier on our wallets too. Happy LRT ing…..

written on 12 June 2016

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MRT Line 2, recent positive updates

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13 things to check before buying a secondary high-rise unit

Updated. These days, it has become a buyers’ market as everyone was saying. So, is it then a buy, buy and buy then? Briefly, no. As for buying for own stay, it’s also not about location, location and location only because if we are expand the search just 10 minutes from the area we love, we could usually find units which are 20-30 percent lower too. Let me remind everyone that just because the price is much lower still does not mean it’s a good buy. For new units, we may need to rely on the reputation of the developer. When it comes to secondary units, especially for high-rise, here are 13 things we could inspect before we decide to buy.

1) External paint. If the developer did a good job, the coat of paint should usually last 8-10 years. If the paint looks worn out in less than 5 years, something is not right. By the way, repainting the whole building is going to be expensive and the JMC could do it only when the reserve fund is very high.

2) Facilities. Check the conditions of all the common facilities. Normal wear and tear is expected but if you see the sign ‘ROSAK’ in every single facility that you inspect, I think you have your answer. There’s no need to view the house.

3) Walk around. Do you feel comfortable? The guard house (dilapidated?), the guards themselves (old and frail?), the environment (dirty?), the people who’s staying there (mostly foreigners?), the cars which are parked there (many are abandoned), the corridors (too narrow?)?, the lift (smelly?) If majority are negative, there’s no need to view the home.

I would view the unit if it passed the three above. This is because all three is hard to CHANGE! Or expensive to change.

4) Corridor leading to home. Too dark? The unit is at the very end of a very long dark corridor? Lights not working but the agent said the management will fix it?  Sorry, please stop here. Are you sure you want your wife or kids to walk home by themselves and you happen to be not around?

5) Distance between your unit and the opposite unit. 5 feet distance should be minimum. The further the better and usually condos are 5.5 feet or more. (Yes, I have been to one which is 4 feet. Well, if the price is very affordable, perhaps)

6) The first view into the high-rise unit. Typical apartments may have 9-10 feet ceiling. A condo should have 10 feet ceiling or higher. I am not sure if anything lower than 10 feet could be considered as ‘Condo.’ How to measure? Look at the front door. The door is usually 6 / 7 feet.

7) The flooring. Jaded looking? Signs of cracks? Too old fashioned? (Ask them for discounts if you could accept. If you could not accept, please understand that changing all tiles are not cheap. It’s considered a major renovation.

8) The ceilings for rooms, toilets, any leaking signs detected? While these CAN be fixed but it will not be easy unless you know the neighbour on top floor who’s willing to spend money to fix something which affects YOU. (Yes, it’s the top unit’s responsibility but getting them to fix is going to take a long time)

9) Built in cabinets / closets. Are they in good condition? If it’s in bad condition, better ask for discounts as you need to redo them. If there are water signs everywhere, I think it’s not going to be easy to fix. Get a friendly plumber to take a look.

10) View from the balcony, if any.  Don’t tell me you can’t see anything except for a tall bald hill right in front. From Feng Shui perspective, this is not good. For your own safety, there’s a little chance for potential safety hazard too. If the view is another high-rise tower, well, that’s normal even if not preferred. (By the way, looking at another tower is common even in Mont Kiara ok…)

11) Unless you are buying a drying machine, ask where will you be drying your clothes. It’s best if there’s sun. If none, deduct some points and get ready to buy TOP or DAIA or Breeze. (Haha…. they are good enough for indoor drying)

12) Room layout / arrangement. Too small? Layout not to your liking? Strangely shaped? Remember, you will be using it every single day. Units are usually bigger in rooms and smaller in living room or bigger in living room and smaller rooms. Decide… (Unless you could afford a 1,700 sq ft unit, then I think it should be okay with 3+1 room arrangement)

13) Cooking arrangement. Only for those intending to cook. (This was my wife and my top requirement) Can you cook freely without making your home ‘oily’, ‘smelly’, and ‘dirty’? Wet and dry kitchen possible? At least a door which you can shut out the kitchen from the living room when you are cooking? Okay, if you do not need a kitchen, perhaps the unit you may be buying may be more modern looking. (just eat out everyday then)

Are you viewing your very first unit?  Write all these down and view a few more units to get a much better idea before making a decision. If this is a secondary unit, the advantage is that everything you could see would be the thing you are buying. I did not talk about area because the truth is, everyone has their favourite areas. It is highly unlikely for someone who loves Puchong side to choose a unit within Damansara and vice-versa. Both have their advantages yeah and by the way, that super busy expressway is called Lebuhraya Damansara – Puchong yeah. Haha. Happy deciding.

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kopiandproperty.com FB page
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 to get daily updates about the property market. Else,
follow me on Twitter here.

updated 20 Jan 2019

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6 reasons I love secondary units

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14 EXPERTS SHARE HOW TO DO WELL FINANCIALLY IN 2017 (FOR MALAYSIANS)

The below is an article first published in
www.mr-stingy.com

and subsequently in a few other media sites. This is a good financial / money related site and the writer is Mr. Aaron Tang who describes this as the reason for him in writing.
mr-stingy
 is my personal blog dedicated to the art of optimization — getting more value by using resources better
. With permission, the article will now be published here for the benefit of all who have missed the tips from 14 experts on how to do well financially in 2017.

—  Start —

THE CEO: LEE CHING WEI, GROUP CEO OF
IMONEY

(
iMoney
 is a Malaysian financial-comparison website, which also hosts a great personal finance Learning Center. Ching is the big boss of the whole thing.)

3 broad areas:

Invest for the future.

Be careful on expenses.

Maximize benefits where you can.

On investment, it doesn’t have to be complicated or big. Start small, with products like Exchange Traded Funds (ETFs) — which have low capital requirements but higher returns over the long term.

The cost of living is rising and unlikely to reduce next year. Try not to incur any additional fixed costs / commitments that aren’t necessary (e.g. more debt). Some sacrifices might be needed.

The 2016/17 Budget provided some opportunities / benefits around “lifestyle tax relief” e.g. becoming an Uber / Grab driver. Take the opportunity to maximize your “wealth” through these initiatives.

THE PROPERTY EXPERT: CHARLES TAN, FOUNDER OF KOPIANDPROPERTY.COM

(Charles is a Malaysian property expert who writes at the beautiful kopiandproperty.com.)

In 2017, I would relook the stock market; and aim for one secondary property and one new target: potential startups. There are now more companies offering dividend yields which are at least 50 percent higher than Fixed Deposits. This includes some big names.

Buy and keep. The property market has seen both transactions and prices dropping. Negative market sentiments are positive signs for potential buyers as long as we do our due diligence. It’s time to get serious with comparisons, viewings and buying. Lastly, join equity crowd funding presentations. If you like an idea, invest in it. It may just FLY!

THE PERSONAL FINANCE BLOGGER: SURAYA ZAINUDIN, FOUNDER OF
RINGGIT OH RINGGIT

(Suraya is arguably the best new personal finance blogger in Malaysia right now. She writes at
Ringgit Oh Ringgit.
)

One-size-fits-all financial advice is hard to give, but if I had to provide one to Malaysians, hands down it would be: “Visit malls less.” (I’m referring to both online and offline malls here.)

Our retail spending is high, but according to the retail industry: not high enough. They try their best to entice you with promotions, creative marketing campaigns, and other goodies so you’ll spend more. Even if you’re diligent about your spending, you may cave in a few times. It’s OK if it’s money you can afford to spend, but not OK if you can’t afford it.

So, in order to resist the sales better, simply reduce your exposure to it. Out of sight, out of mind. ?

THE THINKER: CHOK LEONG, FOUNDER OF
CHOKLEONG.COM

(Chok Leong shares his analytical mind and thoughts at
chokleong.com
. He primarily writes about investments, but shares other ideas too.)

Diversify in other currencies given the weak Ringgit. One year is too short a time-frame for a human life. Look longer term and we will all make more rational decisions by consequence.

Save more and invest. Short-term pain for long-term gain. Always believe that our best days lie ahead because there are lots of smart and hardworking people working day in and day out in the economic system making everyone’s life better — and therefore richer. Investing is one way to participate in the productive activity in the market.

THE FINANCIAL ADVISER: CF LIEU, CFP, FOUNDER OF
HOWTOFINANCEMONEY.COM

(
CF Lieu
, CFP is an independent financial adviser (IFA) licensed by the Securities Commission of Malaysia. His IFA means his advice is unbiased, which means he has no conflicts of interests, which means you should probably trust him.)

How to allocate your funds in 2017 amidst an ambiguous and uncertain market landscape?

(Aaron’s note: You know, because Donald Trump, unpredictable stock markets, and general uncertainty all over the world…)

There is one asset class which has consistently beaten all other asset classes for the past 15 years.

It weathered the Dot Com crash in the early 2000s, the 2008 financial crisis, the US Black Monday in 2011, and the China Stock Market crash in 2015.

In other words, it handles market volatility and ambiguity well.

I don’t know about you but here’s what I believe: Simplicity is the ultimate sophistication.

And that is why Real Estate Investment Trusts (REITs) are still my asset class of choice for now.

THE KLSE INVESTOR: CK, FOUNDER OF
KLSE MALAYSIA BLOG

(
Ck5354
has been writing about the Kuala Lumpur Stock Exchange, Financial Planning and Investment since 2009. He enjoys comparisons to get the best products, and is a father of 2 kids.)

Be prudent and optimize your money. 2017 will be another “everything increase” year. Money will be tight and we’ll be stressed. I strongly suggest doing a financial health check to know your current situation.

We need to save and invest so that money can work for us. Brace for the difficult times ahead by adapting your lifestyle. Frugality and grit are a must in 2017. Some suggestions:

Use cash back credit cards wisely.

Change your mobile phone provider to a cheaper one.

Invest in REITs which give higher returns.

Seek a financial planner’s help if you’re not good in finance.

Invest in yourself by reading books and attending courses; be it share investment, unit trusts or property.

REITs allow you to invest in Real Estate (Properties) in a cheap and convenient way

THE LEGEND: KC LAU, FOUNDER OF
KCLAU.COM

(I’ve been a fan of
KC Lau
‘s writing since a decade ago, when I was still in university. He’s a legendary pioneer in Malaysian personal finance.)

Most people start their new year with a resolution. So there will be a list of goals you want to achieve this year, be it having higher savings, making 15% more money, visiting Europe for three weeks, etc.

I like to think of long-term goals first before I break them down into annual resolutions; then further down to monthly targets, weekly activities and daily commitments. So in 2017 (or any other year), when you have your long-term goal in mind, every daily task you do should contribute to the big goal.

In actual fact though, most people fail in their New Year’s resolutions. The reason is — they don’t have a system to follow. Or they don’t set up a system that works.

So my advice for you to thrive in 2017 is to examine your current “system.” Are there any flaws you need to fix? For example, if your goal is to save 30% of the money you make, your system should be something like:

Set up a savings account with your spouse; so he/she keeps you in check every beginning of the month — to make sure you save 30% of your income.

Whenever your savings account reaches RM 5,000, inject it into your stock portfolio.

THE YOUNG HOTSHOT: DIVVY, FOUNDER OF
DIVIDEND MAGIC

(
Divvy
 is still under 30 years old, but already has a six-figure stock portfolio worth more than RM 300,000. He writes about stocks, dividends, and is fully transparent about his investment portfolio.)

“The best time to plant a tree was 20 years ago. The second best time is now.”

To do well not only in 2017 but for the long road ahead, everyone should endeavor to get their financial affairs in order. Get a budget going, set your financial goals, and INVEST.

Especially to the youths of Malaysia: time is your biggest asset and you should start investing now to benefit from the magic of compound interest. Stay the course and do not let market fluctuations affect your decisions.

THE KLSE GURU: KC CHONG, INVESTOR AND WRITER AT
I3INVESTOR

(If you’re the type that reads portals about the Kuala Lumpur Stock Exchange, you’ll know who
KC Chong
 is. He’s a legend around those parts. I reached out to him to get perspective from an older person who’s seen it all.)

Your best bet to do well in 2017 and beyond is to utilize the human capital in you. Focus in and advance your career. Build and extend your professional networks. Upgrade and improve your skills beyond your technical skill and profession. Read, Google and learn fervently.

Do not neglect your personal finance; and invest for long-term wealth building, using the right philosophy, proven processes and methodologies. Capitalize on the eighth wonder of the world: compounding. Be aware that if something appears too good to be true, it is.

THE VOICE: JULIAN NG, PRODUCER AND PRESENTER OF BFM 89.9’S MORNING RUN

(You probably don’t know what he looks like, but you’ve definitely heard his voice before. Sometimes I wish I could have Julian’s knowledge, his radio voice, and meet his cool guests. Other times, I check out his blog:
The Very Long Run
.)

My financial advice for 2017 is to look beyond 2017.

The sharp weakening of the Ringgit throughout the decades indicates that we have to move away from the mindset that home/Ringgit is best and think about how we can put our investments to work globally for the next few decades. The financial industry throws a lot of money into marketing short-term ideas like “What to invest in 2017?” and the idea that we need to buy into faith-based products.

This includes placing faith in the ability of fund managers, stockbrokers, financial-market gurus, get-rich-quick schemes, technical analyses, and fundamental analyses to achieve financial immortality. These faith-based products charge a small fortune for telling you to believe in miracles.

For those who aren’t billionaires and who don’t have private bankers, it’s time to think about how to get paid well from an active, fulfilling career and how to protect investments by investing passively for the long term — in low cost, market-indexed funds.

THE PHILOSOPHER: CJ ONG, COLUMNIST FOR SIMPLY CJ, THE EDGE MALAYSIA WEEKLY

(CJ is a high-flying banker who also writes a financial column at
The Edge Malaysia Weekly
. I love the way she mixes sound financial advice with real-life examples.)

Retrenchments, rising costs, sinking Ringgit, languishing oil prices and political turmoil both domestically and abroad. If we thought 2016 was bad, the best we can hope for 2017 is that it doesn’t get any worse.

Without careful planning, your finances could resemble someone after a long night partying — disorientated with a couple of bad decisions thrown in before sinking into a sleeping mess — only to wake up realizing you feel even worse.

As any savvy partygoer will tell you, if you want to avoid the hangover of 2016, you need to:

Stay hydrated with savings. It’s so much easier to spend, but you’re gonna need the savings more than ever.

Buffer that hangover with a big, balanced meal of investments. Having food in your stomach slows the rate of alcohol absorption. Similarly, your investment portfolio should be buffering the negative impacts of inflation.

That said, you need to watch what you’re consuming. Focus on risk, not returns. In doubt, do what you know best. Now is not the time for experimentation nor greed.

Lastly, the myth that you can treat your hangover with more drinking is precisely that: a myth. For example, another loan doesn’t solve an existing loan. More of the same problem doesn’t create a solution. You might just have to quit partying altogether.

Of course, sometimes when you only talk to a certain group of people — you end up getting blind spots. So to get a more balanced view, I decided to get some external help. Here’s additional advice from 3 of our friendly neighbors from Singapore.

THE FRIENDLY NEIGHBOR: KEVIN L, FOUNDER OF
TURTLE INVESTOR

(Kevin L writes about index investing and personal finance at
Turtle Investor
.)

I would hardly call it advice, but my thoughts are rather simple, to be honest. Expect the unexpected, and learn to roll with the punches — not just for 2017, but for every single year. Expect changes, and be prepared to adapt accordingly.

Happy New Year!

THE RICH NEIGHBOR: LIONEL YEO, FOUNDER OF
CHEERFUL EGG

(Lionel Yeo is a super-cool guy who helps young executives have richer lives — not just in terms of money. Find out his thoughts about living an awesome life at
Cheerful Egg
.)

Start a “coffee fund”: Set aside enough money for 3-4 coffee meetings a month and buy a Starbucks card. Once a week, pick someone — a colleague, a friend you’ve lost touch with, an expert — and take them out to coffee.

Use the excuse, “Hey, I have a Starbucks card that I really want to use. Do you wanna catch up for a quick coffee?” When you meet them, have fun, ask questions, and try to learn at least one useful thing from them. Before the year is over, it’ll pay off way more than any investing “hack.”

Don’t forget to invest in yourself: learn

THE SENSIBLE NEIGHBOR: TIMOTHY HO, CO-FOUNDER & MANAGING EDITOR OF
DOLLARSANDSENSE.SG

(Timothy runs
DollarsAndSense.sg
, a personal finance website that aims to help people make better financial decisions. If you’ve run out of personal finance blogs to read in Malaysia, check out his website. I guarantee you’ll learn something new.)

Spend less, invest more. It’s really that simple. Most people fall short because they only spend less and save more. But you need to invest if you want to grow your wealth and beat inflation.

The other advice I have is to keep your transaction costs low. For most investors who do not have the knowledge nor time to beat the market, a low-cost index ETF would be a good place to get started on your investing journey in 2017.

SUMMARY

With so many different ideas from a wide range of experts, I hope you’ve had some things to think about. In case you’re feeling overwhelmed though, here’s a summary of some common points I could find. I guess you could call it my takeaway for 2017:

1. The Assets of Choice: REITs and ETFs. Low-cost investing.

2. The Word of Caution: It’s going to be a rough 2017; be prepared for change. Be adaptable.

3. The Evergreen Advice: Reduce Expenses, Save, and Invest for the future: both in terms of yourself, and financial investments.

Personally, I’ll be looking to get into REITs, as well as trying to generate a sustainable second source of income. It looks like uncertain economic times are upon us — but rough seas make good sailors right? Hang on tight.

I’d like to say a big Thank You to all the experts who shared their thoughts. If you’d like to show your appreciation, please take a moment to visit their websites and send them some Internet love?

Happy New Year 2017. I wish you great financial success, and an even richer life beyond that.

— End —

We can also read more finance /money related articles in
www.mr-stingy.com
I personally consider Aaron an established writer as his articles have appeared in The Huffington Post and many more other popular media sites. Happy reading and learning.

Next suggested article:
The waiting game is best played after we own something

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Penang island (central location) condo at RM338k? (15 percent below market price)

Auction Announcement by
MNP.com.my

Anyone in the market looking for a condo for less than RM350k? Well, here’s one good news. There’s an auction coming up and the price actually starts even lower than RM350k. It’s at RM338k and this is 15 percent below market value. An even better news? This is a sale by way of an auction by the owner who has appointed MNP Auctioneers and thus you do not need to try and throw out the existing occupants when you buy the usual properties being auctioned off by banks because of financially distressed owners. As a buyer, there is also no such worry that after you have proposed your buying price, the owner increases the selling price. As an agent, there is no need to worry. Register your potential buyer and if he wins the bid, your commission comes from MNP Auctioneers.

Here’s that full info of an upcoming auction in MNP Auctioneers office in Penang.
Full details for the listing is here.
The auction will happen on 25th October 2017 @ 230pm sharp. You have many more days to drop by the area. It’s in Gelugor which is a very convenient location whether it’s to the bridge, the Bayan Lepas Industrial area, to Georgetown and even to schools and Tesco Gelugor. Location wise, I would personally rate this as a ‘hotspot.’ As for the property itself, make it yours and after renovation it will become your home sweet home. Below is the message by MNP Auctioneers:

— start —

Address: M01-8, DESA PERMAI INDAH, JALAN HELANG, MK13,

11700 GELUGOR, PULAU PINANG.

Extra Details:

Looking for an auspicious house, this unit indicates one of the most prominent addresses where M=Money and 01-8 or 18=”Yee Fatt or Easy Flowing Fortune”

There are ample parking lots with 24 hours security therefore lack of parking isn’t any issues.

Residence in this vicinity are pampered with great surroundings and amenities such as a beautiful landscape garden, a cascading fountain, swimming pool, children’s playground, an outdoor space for a garden BBQ and even a tennis court for the sport lovers.

The project may not be new, but its surroundings are very clean & the area is well maintained by the management. This is a privilege to residence and at the same time, maintenance charges are low.

If as guest we’re to visit, there are ample parking space outside as well. Therefore, organizing parties and gatherings wouldn’t be a hassle.

Other nearby amenities and business outlets are also easily available via short distances such as Primary Schools, High Schools, University Sains Malaysia, McDonalds, KFC, Eateries and Restaurants, Convenient Shops, Banks, Clinics, JPJ & etc.

Lastly the owner of this unit is selling due to moving to live with her Children due to old age, therefore she is also very willing to let this property go at a below market value of up to 15%. Investors can consider buying up this unit, spending a little on its up-keeping and renting it out to a vast opportunity of tenants such as lecturers and teachers or even working adults from the close by areas.

Bidding happens this 25th October 2017 at MNP Office in Penang from 2.30pm onwards. Those interested to know more can contact our hotline at 017-4006661.

Please note only a 2% Bidding Deposit required by Cheque or Cash when you come to bid.

Full details for the listing is here.

— end —

Happy registering and bidding.

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15,000 units sold in 2013. Only 50% sold in 2014? Bad.

Yes, it’s going to be a very slow year where properties are concerned, for the primary properties in Singapore. From a total of 14,984 units in 2013, it is predicted that the number would only be 75,00 – 7,900 for 2014. Most developers would not want to launch now as year end is not a good time to launch. This is based on past experience and even when I was in the industry, everyone told me the same thing. not just property but also cars too. For the stock market however, eventhough the volumes may be lower but it does seem that stock prices for some companies are higher towards the end of the year. Something like, ‘ending the year with a bang’ kind of stock price. 😛

Nevertheless, this situation may not persist in 2015. This is because according to Alice Tan, Director and Head of Research at Knight Frank Singapore, there could be more launches at the beginning of 2015 and before Chinese New Year. This mirrors that of Penag. Most the property launches were done before and during Chinese New Year because this is the time when families can view properties together and make a decision there and then if they are interested to proceed. Thus, I think this may not be applicable to just Singapore but many other markets where people tend to come home, during the festive seasons. This is especially true during Chinese New Year. Some believe it’s auspicious to make good investment decisions because it brings ‘ONG’ or luck for the remaining of the year. I am not so superstitious but as long as it’s supposed to be good, I believe it! Haha.

According to Ong Teck Hui of Research and Consultancy in JLL, 2014 is set to be the worst year ever since 2008. What happened in 2008? Well, that’s the crisis year brought about by the world’s largest economy. One word? Greed. Of course, no matter in which market we look today, when the launch is at the prices which seem attractive and the location is acceptable, it’s still in demand. Just look at the few recent launches in Singapore. take up has been very encouraging. Of course, it helps tremendously if the developer bought the land much earlier and is also willing to take a lower margin. In this part of the world, the margins are still considered very healthy. In many other developed property markets, the typical profit margin is already in single digits due to the extremely high land prices etc. What we continuously need is the awareness from both sides; the developers and the buyers that demand and supply is very much alive and no side should continuously take advantage of the other. Agree? Happy investing.

written on 26 Nov 2014

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15th city in Malaysia about to be declared. Where is it?

I hail from Ipoh, the city which tin mine built. A city I am proud to call home and a city I will definitely stay most of the time after I retire. It’s the third largest city in Malaysia based on population size. There are 14 cities in Malaysia today. How does a town get its status upgraded to a city?

“Among the basic criteria for granting City status on a local government is that it has a minimum population of 500,000 and an annual income of not less than RM 100 million. For a municipal status, the minimum population is 150,000 with an annual income of not less than RM 20 million. These are the latest criteria approved during the
State Council Meeting for Local Government in June 2008. Source here.
“

The 15th city in Malaysia is about to happen. This is as per our Housing and Local Government Minister Zuraida Kamaruddin.

Article in edgeprop.my here.
  That city is Ampang. Zuraida shared that this should happen in 2020. She said, “Only one criteria that they have to qualify which is a university in the area, but the ministry is willing to look into it because there are so many private higher learning institutions in Ampang.”

Currently, there are 14 cities in Malaysia and they are Kuala Lumpur, Ipoh, Petaling Jaya, Shah Alam, Alor Star, Johor Bahru, Melaka city, Kuala Terengganu, Kota Kinabalu, Miri, Kuching North, Kuching South, Balik Pulau and Seberang Prai.  Zuraida said that Ampang Jaya Municipal Council (MPAJ) has met the other requirements of administering a population of over 500,000 people and recording a revenue of RM100 million from its 24 localities. Thus the city status may be granted next year.  Do refer to the
Article in edgeprop.my here

Okay, soon we will have Majlis Bandaraya Ampang Jaya (MBAJ). So will the property prices be rising? Actually, a city status is just showing that the city has grown to a certain size. In other words, due to the population, the number of available properties would have already gone up before this. Thus, it’s safe to say that the city is mature enough and already have amenities needed by a growing population and is likely to attract more population to stay within Ampang Jaya too. Happy understanding.

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Press Release: 15th National Real Estate Awards (NREA) Soars To New Heights In Recognizing Excellence In The Real Estate Industry

Petaling Jaya, 31 July 2023: The 15th Edition of the National Real Estate Awards (NREA), organized by the Malaysian Institute of Estate Agents (MIEA), has concluded on a high note, with the event witnessing remarkable growth in prestige and recognition. The NREA has seen substantial change throughout the years and is now the most awaited national award for excellent accomplishments in the real estate industry. This year’s event added additional exceptional professionals to its distinguished hall of winners further cemented its stature. A total of 70 award winners were celebrated for their outstanding contributions to the real estate industry, with an additional twelve high achievers bestowed with the highly respected MIEA Million Dollar Achievers (MMDA) award.

MIEA’s president, Tan Kian Aun said, “With each passing year, the NREA continues to expand, mirroring the increasing significance and influence of Malaysia’s real estate sector. It serves as a platform to  highlight the exceptional efforts of our agents, acknowledging their steadfast dedication and underscoring the crucial role they hold in the nation’s property market. This event genuinely represents the reality on the field – the unwavering commitment, professionalism, and unwavering pursuit of excellence demonstrated by our esteemed real estate professionals.”

The NREA stands as a testament to the resilience of the property market, even amid challenging times. Despite the uncertainties, Malaysian real estate practitioners have demonstrated exceptional  determination and adaptability, continuing to serve the public with consistent professionalism.

This year’s event held a special significance with the recognition of MIEA’s Charter President and founding member, Dr. Ernest Cheong Yong Yin, with the Lifetime Achievement Award. Cheong played a pivotal role in the establishment of MIEA, laid the foundation for the consequent expansion of the budding real estate industry at that time to support the growing home ownership needs of Malaysians.

Another standout awardee of the evening was Wong Yau Long, the managing director of Cornerstone Xstate Sdn Bhd, who received the highly coveted Real Estate Agent of the Year Award. With an impressive career spanning since 2005, Wong has demonstrated unwavering commitment and dedication to the real estate industry. Wong’s exceptional accomplishments throughout his career serve as a shining example of the highest standards in the real estate industry.

Ms Chan Ai Cheng, the immediate past president, has demonstrated the significant role women play in the real estate industry, thanks to the ample opportunities available. This year, the Real Estate Negotiator of the Year award was won by a woman, further underscoring the importance and contributions of women in the field.

The CEO of MIEA K. Soma Sundram who initiated the awards 15 years ago said “The NREA is not only a symbol of achievement but a symbol of professionalism and dedicated service to the public at large. NREA will continue to be a beacon of inspiration while motivating real estate professionals to serve with passion, integrity, and dedication. MIEA remains committed to fostering growth, building professionalism, and recognizing outstanding achievements within the real estate profession.

“NREA have come of age and held gratitude to all those who believed!” he concluded.

WINNERS LIST (2023)

AWARD
APP
FIRM
Lifetime Achievement Award
DR. ERNEST CHEONG YONG  YIN
—
Real Estate Agent of the Year
WONG YAU LONG  (E2750)
CORNERSTONE XSTATE  SDN BHD (E(1)1851)
Super Large Firm of the Year  (1001 or more RENs)
IQI REALTY SDN. BHD. (E(1)1584)
Large Firm of the Year (501 – 1000 RENs)
PROPNEX REALTY SDN BHD (E(1)1800)
Small Firm of the Year (100 or less  RENs)
SHIJIE PROPERTY (E(3)1941)
Residential Real Estate Firm of the  Year
CORNERSTONE XSTATE SDN BHD (E(1)1851)
Commercial Real Estate Firm of  the Year
KNIGHT FRANK MALAYSIA SDN. BHD. (VE(1)0141)
Industrial Real Estate Firm of the  Year
ESPRIT ESTATE AGENT SDN. BHD. (E(1)1448)
Project Marketing Firm of the Year
IQI REALTY SDN. BHD. (E(1)1584)
Most Innovative Marketing Idea of  the Year
JLL PROPERTY SERVICES (MALAYSIA) SDN. BHD.  (E(1)1511)
Tech Real Estate Firm of the Year
ESP PROPERTIES SDN BHD (E(1)0572)
Commercial Sale of the Year
PAUL JAMES BUCKLEY  (REN54476)
KNIGHT FRANK  MALAYSIA SDN. BHD.  (VE(1)0141)
Industrial Sale of the Year
LESLEY SIANG LAY LENG  (PEA2429)
NEW BOB REALTY SDN  BHD (EPM(1)0011/2)
Commercial Rental Deal of the  Year
TEH YOUNG KHEAN  (E2211,PM0862,V0862)
KNIGHT FRANK  MALAYSIA SDN. BHD.  (VE(1)0141)
Industrial Rental Deal of the Year
JOYCE LOW HUI FERN  (PEA2227)
ESPRIT ESTATE AGENT  SDN BHD (E(1)1448)
AMOS SOO KEIN WAH  (REN18355)
CID REALTORS SDN  BHD (E(1)1855)
MIEA Million Dollar Achiever
DANIEL LIM CHEE KEONG  (REN09289)
ESPRIT ESTATE AGENT  SDN BHD (E(1)1448)
(MMDA)
DESMOND GAN PUI CHOW  (REN07878)
KNIGHT WORLD REALTY  (M) SDN BHD (E(1)0239)
EMILY LOO TUAN KIAW  (PEA1260)
AFFLUENCE  PROPERTIES (E(3)1902)

JOYCE LOW HUI FERN  (PEA2227)
ESPRIT ESTATE AGENT  SDN BHD (E(1)1448)
LESLEY SIANG LAY LENG  (PEA2429)
NEW BOB REALTY SDN  BHD (EPM(1)0011/2)
MABEL MAK P.E (PEA0985)
PROPNEX REALTY SDN.  BHD. (E(1)1800/1)
NORMAN SOO KEIN HONG  (REN20639)
CID REALTORS SDN  BHD (E(1)1855)
OOI KOK LEONG  (REN29811)
SHIJIE PROPERTY  (E(3)1941)
VIANNIE CHUA YEE SIEW  (REN34954)
CBD PROPERTIES (USJ)  SDN. BHD. (E(1)1197/8)
VICTOR LIM WEE TAT  (REN09135)
PROPNEX REALTY SDN  BHD (E(1)1800)
Real Estate Negotiator of the Year
JOYCE LOW HUI FERN  (PEA2227)
ESPRIT ESTATE AGENT  SDN BHD (E(1)1448)
Rookie Real Estate Negotiator of  the Year
BERWYNN CHIA CHEE  KEONG (REN52680)
CORNERSTONE XSTATE  SDN BHD (E(1)1851)
Commercial Real Estate  Negotiator of the Year
VICTOR LIM WEE TAT  (REN09135)
PROPNEX REALTY SDN  BHD (E(1)1800)
Industrial Real Estate Negotiator of  the Year
JOYCE LOW HUI FERN  (PEA2227)
ESPRIT ESTATE AGENT  SDN BHD (E(1)1448)
Perak Real Estate Firm of the Year
DEONE PROPERTIES SDN. BHD. (VEPM(1)0312)
Pahang Real Estate Firm of the  Year
HEBAT REALTORS (E(3)1641/2)
Federal Territory Real Estate Firm  of the Year
IQI REALTY SDN. BHD. (E(1)1584)
Malacca Real Estate Firm of the  Year
IQI REALTY SDN. BHD. (E(1)1584/8)
Penang Real Estate Firm of the  Year
IQI REALTY SDN. BHD. (E(1)1584/3)
Sarawak Real Estate Firm of the  Year
KOZIN REAL ESTATE SDN.BHD (E(1)1576)
Johor Real Estate Firm of the Year
NEW BOB REALTY SDN BHD (EPM(1)0011/2)
Sabah Real Estate Firm of the  Year
PROPNEX REALTY SDN BHD (E(1)1800/3)
Selangor Real Estate Firm of the  Year
PROPNEX REALTY SDN BHD (E(1)1800)

Kedah Real Estate Firm of the
Year
VIKS PROPERTIES SDN BHD (E(1)1890)

Negeri Sembilan Real Estate Firm  of the Year
WEREG PROPERTIES SDN BHD (E(1)1955/1)
Federal Territory Residential Real  Estate Firm of the Year
CORNERSTONE XSTATE SDN BHD (E(1)1851)
Pahang Residential Real Estate  Firm of the Year
HEBAT REALTORS (E(3)1641/2)
Sarawak Residential Real Estate  Firm of the Year
KOZIN REAL ESTATE SDN.BHD (E(1)1576)
Sabah Residential Real Estate  Firm of the Year
PROPNEX REALTY SDN BHD (E(1)1800/3)
Selangor Residential Real Estate  Firm of the Year
PROPNEX REALTY SDN BHD (E(1)1800)
Selangor Commercial Real Estate  Firm of the Year
PROPNEX REALTY SDN BHD (E(1)1800)
Penang Industrial Real Estate Firm  of the Year
SHIJIE PROPERTY (E(3)1941)
Sabah Real Estate Negotiator of  the Year
BONNIE HONG LEE FUNG  (REN19993)
PROPNEX REALTY SDN  BHD (E(1)1800/3)
Sarawak Real Estate Negotiator of  the Year
EMILY LOO TUAN KIAW  (PEA1260)
AFFLUENCE  PROPERTIES (E(3)1902)
Selangor Real Estate Negotiator of  the Year
JOYCE LOW HUI FERN  (PEA2227)
ESPRIT ESTATE AGENT  SDN BHD (E(1)1448)
Pahang Real Estate Negotiator of  the Year
KENNY LOO SOON YEN  (PEA2338)
IQI REALTY SDN. BHD.  (E(1)1584/12)
Johor Real Estate Negotiator of  the Year
LESLEY SIANG LAY LENG  (PEA2429)
NEW BOB REALTY SDN  BHD (EPM(1)0011/2)
Federal Territory Real Estate  Negotiator of the Year
MABEL MAK P.E  (PEA0985)
PROPNEX REALTY SDN.  BHD. (E(1)1800/1)
Malacca Real Estate Negotiator of  the Year
WESLEY TAN YING HONG  (REN28187)
IQI REALTY SDN. BHD.  (E(1)1584/8)
Kelantan Real Estate Negotiator of  the Year
YAP SIER SENG  (REN48499)
IQI REALTY SDN. BHD.  (E(1)1584/17)
Penang Real Estate Negotiator of  the Year
ZIE MING JIET (REN14147)
IQI REALTY SDN. BHD.  (E(1)1584/3)
Malacca Residential Real Estate  Negotiator of the Year
ALVIN CHAN KAI BOON  (REN25846)
IQI REALTY SDN. BHD.  (E(1)1584/8)
Sabah Residential Real Estate  Negotiator of the Year
BONNIE HONG LEE FUNG  (REN19993)
PROPNEX REALTY SDN  BHD (E(1)1800/3)

Federal Territory Residential Real  Estate Negotiator of the Year
MABEL MAK P.E  (PEA0985)
PROPNEX REALTY SDN.  BHD. (E(1)1800/1)
Johor Residential Real Estate  Negotiator of the Year
TRACY ONG PEI LI  (REN19396)
NEW BOB REALTY SDN  BHD (EPM(1)0011/2)
Penang Residential Real Estate  Negotiator of the Year
ZIE MING JIET  (REN14147)
IQI REALTY SDN. BHD.  (E(1)1584/3)
Johor Commercial Real Estate Negotiator of the Year
TAI EEFAN  (REN24498)
NEW BOB REALTY SDN  BHD (EPM(1)0011/2)
Selangor Industrial Real Estate  Negotiator of the Year
JOYCE LOW HUI FERN  (PEA2227)
ESPRIT ESTATE AGENT  SDN BHD (E(1)1448)
Sabah Industrial Real Estate  Negotiator of the Year
KENNETH CHAI KEAN WEI  (REN43663)
PROPNEX REALTY SDN  BHD (E(1)1800/3)
Johor Industrial Real Estate  Negotiator of the Year
LESLEY SIANG LAY LENG  (PEA2429)
NEW BOB REALTY SDN  BHD (EPM(1)0011/2)
Federal Territory Industrial Real  Estate Negotiator of the Year
NORMAN SOO KEIN HONG  (REN20639)
CID REALTORS SDN  BHD (E(1)1855)
Penang Industrial Real Estate  Negotiator of the Year
SAW GEE KHIN  (REN28113)
SHIJIE PROPERTY  (E(3)1941)

-END-

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16.1% GDP growth in 2Q 2021! Okay, that is because…

16.1% growth in 2Q 2021! Okay, that is because… Here’s that full report from Bank Negara Malaysia for our 2Q 2021 growth yeah.
Click here to refer to the full article.
So, the number is real and not some numbers plucked from the sky. By the way, quarter-on-quarter basis (means versus 1Q 2021, we actually registered a decline of 2.0% yeah.

So, the 16.1% growth in 2Q 2021 was because it was compared to 2Q 2020 yeah. Remember what happened in 2Q 2020? Covid-19 arrived and we had our very first lockdown in March 2020 which lasted until May 2020. So, 2Q 2020 was a gone case scenario because there were no economic activities during the lockdown period.

Why did we grow in 2Q 2021?

Economic performance was supported mainly by the improvement in domestic demand and continued robust exports performance. The strong growth also reflected the low base from the significant decline in activity during the second quarter of 2020.

Economic activity picked up at the start of the second quarter, but slowed down thereafter, following the re-imposition of stricter containment measures nationwide under Phase 1 of the Full Movement Control Order (FMCO).

All economic sectors registered an improvement, particularly the manufacturing sector. On the expenditure side, growth was driven by higher private sector spending and strong trade activity. On a quarter-on-quarter seasonally-adjusted basis, the economy registered a decline of 2.0% (1Q 2021: 2.7%), weighed by the tighter containment measures.

As expected, headline inflation increased to 4.1% during the quarter (1Q 2021: 0.5%), due mainly to the base effect from fuel prices, as well as the lapse in the effect from the tiered electricity tariff rebate. Core inflation remained stable at 0.7% during the quarter (1Q 2021: 0.7%).

We are on recovery path even if near-term growth is affected by recent resurgence in Covid-19 cases

The Malaysian economy remains on a recovery path in 2021. While the resurgence of COVID-19 cases and the re-imposition of nationwide containment measures are expected to weigh on growth, the impact will be cushioned by several factors.

These include continued allowances for essential economic sectors to operate, higher adaptability to remote work, as well as increased automation and digitalisation. Growth will be further supported by policy measures, which will provide cash flow support, particularly for affected households and businesses.

Going forward, the growth trajectory will depend on the ability to contain the epidemic and materialisation of health outcomes from the nationwide vaccination programme. This will allow economic sectors to gradually reopen and provide some lift to household and business sentiments.

BNM’s projection for 2021

Thus, in projecting the revised growth range for the year, the Bank took into account the latest global economic developments, the implementation of the first phase of the National Recovery Plan (NRP), and assumptions on the gradual transitions to the second, third and fourth phases for each state based on the pace of vaccination rollouts, and healthcare system capacities.

Against this backdrop, the Malaysian economy is projected to expand between 3.0% and 4.0% in 2021. The new growth projections are lower compared to the previously-announced growth range
4
, due in large part to the re-imposition of nationwide containment measures.

Nevertheless, the expected re-opening of the economy would support a gradual recovery in the fourth quarter this year, with higher global growth and sustained policy support providing a further lift to economic growth.

The recovery is expected to accelerate further going into 2022, supported by a gradual normalisation of economic activities as well as the positive spillovers from continued improvement in external demand.

Message from BNM Governor Datuk Nor Shamsiah

Emphasising the domestic immunisation programme, Governor  explained “Malaysia’s growth recovery is expected to broadly resume in the later part of the second half of 2021 and improve going into 2022.

A key catalyst for economic reopening and a driver of positive sentiment will be the continued progress and effectiveness of the national vaccination programme, which would alleviate the strain on healthcare system capacity and allow for the relaxation of containment measures.

In addition, growth will be further supported by the ramp-up in commodity production, some materialisation of pent-up demand, and continued investment in large-scale infrastructure projects following lifting of restrictions.”

In the near term, headline inflation is projected to moderate as the base effect from fuel prices dissipates. For 2021 as a whole, headline inflation is expected to average between 2.0% and 3.0%.

Underlying inflation, as measured by core inflation, is expected to remain subdued, averaging between 0.5% and 1.5% for the year, amid continued spare capacity in the economy.

What has been said in brief?

GDP growth for 2021 is still going to be a positive number.

Economic measures taken has helped mitigate the fallout from the current Covid-19 situation.

Growth is expected to continue and accelerate in 2022.

Private consumption will be the key, which meant that as long as most people continue to have income, we will be fine.

Yes, I personally think we are not as bad as what some is saying. Thanks for reading.

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16% returns per year for 10 years. Looks like a scam except that it is not.

A good friend told me that in future, it’s not just office workspace that will be shared.

Even a home of 1,000 sq ft could be shared by three owners with the living room as a common space. I know this is already happening in some countries but I really do wonder how Malaysians will take it currently. Well, we could buy together with our best pals but let’s understand that living together and sharing a common space will need lots of forgiving and forgetting… Hopefully the relationship is strong enough when debates start as to where should the sofa be placed or even what brand and size should the LED TV be since it will be shared.

I could go on but you already get the picture.

By the way, all these will be driven by affordability. It has happened in Hong Kong and it’s no longer just investing in homes.
Article in SouthChinaMorningPost.com
  Within the article, it says that two things are becoming common.

First one is investments into alternative investment classes which could potentially be giving higher returns than traditional real estate.

Second one is the attractiveness of co-living to investors because young people are turning to shared living space in a super expensive city; Hong Kong.

The reason co-living is becoming popular is because the housing options for graduate students are limited and renting a flat in Hong Kong could easily take up about 80 percent of starting salaries of young professionals. The article also revealed that between 2015 and 2020, co-living schemes in the city are estimated to provide over 1,200 beds, with rents ranging from HK$2,800 (US$357) to HK$20,500.

That compares to an average monthly rent of HK$20,000 in the city.

As for alternative investments, it is to buy car parking spaces. The reason? Car ownership in Hong Kong has grown nearly 50 per cent from 409,000 in 2007 to 606,000 in 2017.

But private car parking spaces only increased by 9 per cent from 613,000 to 668,000 in the same period. JLL said that within the last 10 years, car park prices have increased by a compounded annual 16 percent.
Full article for reference in SCMP here.

Ladies and gentlemen, this is not a scam.

Earlier article about car park investment here.

This kind of returns come from investing into a car park space in Hong Kong. That spot in our high-rise home that we do not think too much about thus far is now a form of investment.

I think it’s important to buy more car park lots when we buy a high-rise unit regardless of whether that development has a walkway to the LRT / MRT station. As for whether it would increase in prices like that of Hong Kong, the answer is a simple, No.

What it will do however is that it will increase the attractiveness of our unit when we intend to sell. Imagine all the other units up for sale comes with one car park while our unit comes with two. The premium in future will definitely be more than the original price we paid. Happy following.

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written on 23 Jan 2019

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1,600 sq ft, HKD 16 million compared to cheaper micro ones..

A top management colleague from my Hong Kong office was sharing with a group of us that it gets harder to own a property in Hong Kong. In fact it gets very tough for fresh graduates as their earning would take them ‘forever’ to own a property unless their parents intervene with downpayment. According to the
leading job site in Hong Kong, jobsDB
, the average starting pay for a university graduate in Hong Kong is HK$14,685. In RM terms, this is over RM8,000. Definitely considered a good starting pay. The fresh graduates could choose to buy a micro-flat / mosquito flat which seems ‘affordable.’ A recent choice they have is this.
Buy a Tesla or buy a micro-flat? Both similar ‘sized’

The price is around HK$4 million. The typical downpayment needed would likely be HK$1.6 million.  Assuming the fresh graduate saved all his salary, it would take him close to 23 years to save for the downpayment.  Note though that it is likely to be far shorter since they would have salary increments, promotions etc. In fact, my staff in Hong Kong office has much higher pay than me after conversion. Haha.

When we look at just a 161 sq ft micro apartment at HK$4 million (RM2.2 million) and start to think what’s the price for those huge units, well, it does not get a 10x multiplier. 1,600 sq ft apartment is definitely not HK$40 million RM22 million). In a recent article in TheStar, the price for Wonderland Villas, an older development looks cheap in comparison to the crazy prices of newer places.
Here’s the article and it quoted a 1,600 sq ft apartment at HK$16 million.
  I did a check at squarefoot hongkong on Wonderland Villas and found out that it’s considered okay, by Hong Kong’s expensive home standards. For HK$4.3 million (RM2.37million), a Hong Konger would already be able to get a home close to 500 sq ft which is definitely more comfortable than the micro-apartments being offered today. HK$8 million (RM4.4 million) would get a family a home close to 1,000 sq ft. A luxury in size for Hong Kong. Of course, for these bigger homes, I think it would be bought by a couple which would make it easier to afford. Here’s an earlier article:
Marriage provides property affordability, seriously

Coming back to Malaysia, the choices are slightly better even if many would say that some of these secondary areas are not attractive.
 No malls, no cafes, no MRTs and many more reasons
.
 I do think that Malaysia would never reach the levels in Hong Kong because Greater Kuala Lumpur is still HUGE and there are way too many areas which are still not that popular today. Do note that when prices become way too unaffordable that NO ONE could buy anything, the property market will crash.
These are the few reasons why property market would crash
.
 I hope this does not happen since both the government and private developers are focused on launching affordable units these days.  As for fresh graduates, remember to work harder and rise up the career ladder plus save more for investments. Perhaps even start a start-up if you can. As for me, I would prefer to be just a working professional. Everyone’s different. Happy following.

written on 8 July 2017

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Forest City size cut by 72%? Says who?

After an earlier report in many newspapers about its total project size being reduced in size from 1600ha down to 450ha by the Department of Environment (DOE), we have a statement from the China developer Country Garden Holdings. Final decision is still pending. They also said that they are very confident because the detailed environmental impact assessment (DEIA) is on their side. If the DEIA is passed, it simply meant that the damage to the environment is controllable and is not as bad as what everyone is saying. The everyone here refers to both the Singapore government as well as locals which said that the huge reclamation work may severely damage the environment in the narrow waterway. Thus a DEIA was conducted. A final decision is still pending but would be announced very soon. The project is Forest City and it is a joint venture between Country Garden and the Johor state company Kumpulan Rakyat Prasarana Johor.

Without a final conclusion, everything has been halted. The reclamation work has been suspended since June 16. This meant that it had lost over 6 months of valuable reclamation time. Country Garden further said that all the assessment directives thus far are focussed on compliance to high standards and has not touched on limiting the project size or any other compromise. A dedicated online for Frequently Asked Questions (FAQs) would also go live by Jan 9. Nevertheless this limitation may not be that bad. According to CB Richard Ellis (M) Sdn Bhd group executive director Paul Khong, total time needed just for the reclamation would take one to two years. By then, the current negative sentiment should have improved. Landserve (Johor) Sdn Bhd executive director Wee Soon Chit added that, “There is no need to be so gung ho and reclaim everything now. Reclaiming everything at one go would also impact the company’s cash flow. It already has the existing project in Danga Bay, which should keep it busy for the time being.”

I have no access to DOE or Country Garden but I think the project is definitely going ahead. As for the size, even if the current approved size is reduced, it can still be reviewed in the future. Based on the current market situation, it may be more prudent to reclaim based on how the market reacts. I personally feel that there are advantages to both sides for the project to proceed. The more linkages between both sides the better it would be. Perhaps the missing link might be to rope in another strategic partner into the joint venture. A good company from the other side. A win-win situation is definitely easier for Iskandar-Singapore than Singapore-Batam. No, I do not mean politically. I meant the distance including the history, the current cordial relationship and even Singapore’s continuous growth plans. Happy investing or accumulating before jumping in.

written on 7 Jan 2015

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Concern by Singapore is now at the highest level; mega reclamation

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160km per hour. East Coast. By Private sector. Starting………

Why are trains better than planes? Google for the answers (
one example here
) but here are two points from me. It can carry MORE people and MORE cargo per trip. It’s generally cheaper too, for the passengers, the cargo customers and even the operator. So yes, I support more linkages because it would mean more economic activities which in turn would spur creation of jobs and thus more investments whether from external or domestically. Only when cities or towns become more connected that property investment potential would increase as well. There’s another new one in Malaysia. The East Coast Rail Line (ECRL) which will cost an estimated RM55 billion to build. The trains would have a top speed of up to 160km per hour. This is the speed for the KLIA Ekspres and KLIA Transit. Currently, the trains used are supplied by Siemens AG. At the moment, it is the fastest speed for rail travel in Malaysia. In fact, it takes just 28 minutes to reach KLIA from KL Sentral, something which is not doable by the usual car travelling speed. Even if doable, it will be extremely unsafe.

Image by The Star Graphics

ECRL would also be privately funded. No prizes for guessing the company for which the funds would come from. It is China’s state-owned enterprise China Communications Construction Co Ltd (CCCC).  Malaysia Rail Link Sdn Bhd (MRL) – the body under the Finance Ministry has been formed and is tasked to undertake the implementation of the ECRL. The newly-established MRL is the operator and owner of the 600km ECRL, a key catalytic infrastructure project for the East Coast Economic Region. It will be providing the much-needed rail connection to Kelantan, Terengganu and Pahang. A few familiar local contractor names are expected to benefit from the project including Gamuda and IJM Corp Bhd which which have strong rail expertise.

What is happening currently is that MRL has launched a three-month public display of the ECRL and if there are no major objections, the construction is targeted to start in July 2017. It will connect Wakaf Baru in Kelantan to the Integrated Transport Terminal in Gombak and will eventually be extended to Port Klang. The train will be carrying both passengers and freight. Full article in
 thestar here.
This project will not be managed by Keretapi Tanah Melayu Bhd (KTMB). It will be independently operated by another operator. Sometimes, a split enables us to see what are some of the possibilities. Who knows, losses could be minimised or operating profits could be hastened? Happy following and I wish it will be completed on time or ahead of time. After all, it was also China who said that it could build the

High Speed Rail

faster than the current timelines agreed with Singapore.

written on 29 March 2017

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Melaka and that RM5 billion FDI from China for 2016

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