Kuantan is now a city. How many cities are there in Malaysia?

Kuantan is now a city. It became a city on 21st February 2021. Kuantan is the capital city of Pahang. Did you know how many cities do Malaysia have? How many could you think of at the top of your mind? 5? 8? 12? Erm… you are quite far from the actual number. If you guessed Ipoh as one of them, you are right. Ipoh was the second city to be recognised as a city. Well, Kuantan is the number 19th city in Malaysia and it seems that there are also another few cities on its way too. Image shows all the current cities in Malaysia.

Image course:
http://jkt.kpkt.gov.my/en/SoalanLazim/Umum-JKT%26PBT

Article in nst.com.my
 Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah today proclaimed Kuantan a city and opened the Kuantan City Council Complex at Tanah Putih, here.Housing and Local Government Minister Datuk Zuraida Kamaruddin presented a letter proclaiming Kuantan a city to Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail before it was handed over to the King. Al-Sultan Abdullah then declared Kuantan a city.

The first mayor for Kuantan City Council (MPK) is president Datuk Hamdan Hussin. Al-Sultan Abdullah then signed a plaque to officially declare Kuantan a city and opened the Kuantan City Council Complex. This proclamation came after an approval granted by the Federal government via a Cabinet meeting on May 8, 2019. Menara Kuantan 188, the country’s second tallest tower will also be open by the King. Please do read the full article here:
Article in nst.com.my

Image source:
https://traveltriangle.com/blog/things-to-do-in-kuantan-malaysia-bdp/

What are the criteria to become 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.
“

Would property prices move upwards then?

Do take a look at the city list above. How many of these cities have property prices which is higher than all other towns in Malaysia? Generally, the property prices are higher than most towns because of the demand from property coming from a population which is continuously growing. Most of the time, there’s migration from smaller towns and villages within the same state to the capital city. This is why demand for housing would keep growing and this would also push up land prices which meant future homes would definitely be priced higher.

What’s in Kuantan?

I have been to Kuantan a few times and I think of it as a small city where everything we need is available but there’s nothing too modern or contemporary. Driving there from Kuala Lumpur is a journey of close to 3 hours. Not that near but not too far either. JB is further away. There are lots of things to do in Kuantan as a tourist. Do drop by okay. Here are the 10 best things to do over at Kuantan.
10 Best Things to do in Kuantan. (click to read)
 Please do not travel currently yeah. Crossing state is not allowed at the moment.

Happy visiting it soon yeah.

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Kuching, that city I wanted to buy a high-rise unit.

I used to go to Kuching often. Perhaps once every 2 years or less. I think it’s clean, better managed than many other cities in Malaysia and lots to see and most of their attractions are considered well maintained in comparison to many in West Malaysia. I will be going again this coming October. Every time I am there, I would rent a car or my friends would bring me around. I have never failed to remind my wife that one of these days, we should get a place in Kuching, a high-rise unit. There are choices but not many and as usual, I did not take any action as there were just no time to review units.

Well, it was reported in a few medias that in Kuching, there is now a shift to high-rise apartment and condominium living. It said that the demand for these units are increasing versus landed residential homes which were once the preferred choice. Well, I asked my Kuching friend who told me that locals still think landed home would be the preferred choice BUT for those hotspots, as usual
prices are becoming unaffordable
. This is where the force will start to shift people’s acceptance to something more palatable and perhaps even enjoyable, condos with facilities. The younger generations who has gotten married may also not be putting their family home as a main choice and prefer to move out instead.

As reported in Starbiz, according to leading property consultant
CH William Talhar & Wong Sdn Bhd (WTW)

said that there were a dozen new launches of apartments and condominiums in Kuching last year with most of them being part of a commercial development and 80 percent of them within the city as well as in a fast-growing Matang. As per google map, Matang is around 12km from the Kuching city and it’s around 13 minutes away. Considered near as per Klang Valley’s standard.  WTW said 6,500 units ranging from 1,000 to 3,000 sq ft will be entering the market within the next few years.

Some high-rise projects in Kuching include The Rivervale Condominium by CMS Property Development Sdn Bhd, LD Legenda (569 units), Gala City Residence (432 units), Ataria Resort (428 units), Tropics City (352 units) and The City Gateway (200 units). WTW said that condominium studio units fetched as high as RM700-RM900 per sq ft (psf) in
prime locations.
 Fortunately for me and some other younger buyers, the average selling prices are still around RM500 per sq ft. For landed, the choice is clear, terraced- double storeys followed by two-storey semi-detached houses. The prices for prime locations would range from RM550,000 for two-storey terraced units and more than RM1mil for semi-detached units.

I think the market continues to move but I also still believe that there are always room for continuous growth and choices. Whenever a small piece of land in a prime location is made available, the only option would be high-rise. Else, the by far fewer number of landed properties being built will be sold at
prices so high no one could afford to buy.

Still thinking of staying closer to parents at a prime location and yet would appreciate some private space and perhaps creature comfort conveniences like a swimming pool or a gym? I think high-rise may just be the choice for you. Happy buying Kuching.

written on 7 July 2016

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Kuching property market facing a slowdown ahead?

Kuching has always been a favourite city of mine for many years. This is one of the few cities which I always tell my wife that we should come at least yearly. Its clean, the food’s great and everything could be accessed with Kuching city as the base. The only issue would be that my visits are often short and thus I did not have too much time to view properties. Perhaps one of the future trips I should do just that. My Sarawakian friends however told me that I better be very rich because if I do buy, the rental yield may be low or negative. Well, what’s up with Kuching propetty market recently?

As per one article in
theborneopost.com
,
two main issues are plaguing the Sarawak property market. They are weaker household incomes and higher-than-expected property prices. According to Sarawak Housing and Real Estate Developers Association (Sheda) president Joseph Wong, the new developments being launched are already smaller and more selective because of market sentiment. He shared that, “A research by Institute Rakyat has shown that price of an average home in Sarawak is over nine times more than the annual income of a typical Sarawakian family. This ranks Sarawak under the severly unaffordable category in the Malaysian housing affordability index – even beating metropolitan Kuala Lumpur.”

Wong reiterated that it is important for the state to consider Sheda’s proposal on affordable homes. He said, “Under the scheme, it is proposed that houses with a minimum area of 850 square feet could be built and sold at a maximum selling price of RM250,000.” The scheme however would need some help from the state government. For example, removal of density control for landed properties, adoption of plot ratio density for strata development and removal of mandatory criteria to build low cost homes or SPEKTRA.

Sometimes, I do wonder who would benefit with the developers and the state government at disagreements into what should be done to make the properties affordable. Perhaps the market could decide? Some landed property listings from the main property site in East Malaysia,
propertyhunter.com.my
 (Image) Regardless, I am still dropping by Kuching towards end of the year. It’s time for lots of good food and that sweet Pineapple fruit juice. Cheers.

written on 26 Sept 2016

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Kuching, Sarawak with a RM11 billion GDV development

Yes, I am a Kuching lover.

Too bad, I do not yet own any condo there yet. However, my next trip there is in December. Let’s see if I have at least a bit of time to view some projects. Secondary ones I guess since it should not be too far away from Kuching city if I need to rent it out to some working professionals. Any AirBnB specialists reading this now, feel free to send your contact to me. Perhaps I can contact you next year. Well, currently, I do not have enough savings but nothing wrong to view right. Getting to know more is always better. Here’s a list of things to do in
Kuching by a local site, ‘Where’s Sharon’.

Reported in
TheStar today, One listed company, Zecon Bhd
 is planning a mixed property development project in Kota Petra, Kuching. The total gross development value (GDV) is RM11bil. It’s chief executive officer Syed Muzakir Al Joofre said this about the Kota Petra project, “The project comprises multiple clusters, including proposed state and federal new administrative centres, tourism enclave, education city, resort destination, integrated affordable homes and a medical city.” This will be Zecon’s largest property development project. He was speaking to reporters after an investors’ briefing on its financial year 2017 full-year results on Thursday. He shared that Sarawak’s state planning authority has approved the 1,203ha Kota Petra project. it includes PR1MA homes too, with a total of 1,065 units within a 49.4 ha land. Besides that, there is also a 105.6ha 1Malaysia Civil Servants Housing (PPA1M) project with a total of 2,332 units.

I think this is certainly good news for many people, especially those who has lamented the fact that even Kuching properties are becoming too expensive. Certainly they should quickly register and take advantage of these units. Kuching’s property was listed under the severely unaffordable category undder Malaysia’s housing affordability index.
Reported in TheStar not too long ago,
Sarawak’s property was in the severely unaffordable category of Malaysia’s housing affordability index. According to its Local Government and Housing Minister Datuk Dr Sim Kui Hian, Sarawak’s low-income group needs about 60,000 units of affordable homes currently. A check with

brickz.my

showed the typical price for Kuching’s condos. Happy thinking about Kuching properties and happy following.

written on 9 Nov 2017

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Kudalari condo up for sale; first ever en-bloc / en-masse sales in Malaysia

I read an interesting article in propertyguru.com.my today. I then searched for more information from
propsocial.my
 (refer to the image of “Desa Kudalari.” This is the OLDEST condo in the KLCC area built by Tan & Tan.. The owners may be able to band together and sell the while project en-bloc. I think the reason for selling is also because the condo is already 33 years old. Yes, it was completed in 1984! I was in primary school then. Haha. Now you sort of know my age.

According to marketing agent CH Williams Talhar and Wong (WTW), majority of the owners are seeking a buyer for the property. If this is successful, it will be the first en-bloc sale of a strata building here in Malaysia. In case anyone wanted to know, the tenure is freehold and the owners are definitely not under any pressure to sell.

Another very good reason for them them to sell is because when sold en-bloc, the price per sq ft is definitely higher versus selling it unit by unit. As per the property guru article, the indicative price is between RM2000 – RM3,5000 per sq ft versus an earlier sale for just RM1,250 per sq ft in 2015. The buyer would definitely be demolishing it and build something with a much higher gross development value (GDV). This high-rise condominium has one 19-storey residential tower and four blocks of three-storey buildings on 7.35 acres of freehold land. Take a look at a picture of its swimming pool. Yes, it looks dated but all the information I could found online said that the maintenance has been good.

Actually, if there are more en-bloc / en-masse sales or even some new laws being made to facilitate these en-bloc sales, the government may be able to build at better locations even for affordable homes. Just look to Singapore for ideas to do it effectively and efficiently. In fact, once sold, the developers may be able to come up with a better design and get more interest with the said property. In this particular case, the total build up may be many times higher, conservatively. After all, the older buildings are all within hotspots today! Happy visiting your friends in Kudalari condo. I have none currently.

written on 7 Apr 2016

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Kulim International Airport? KXP. This is the company building it

I remember quite some time back, this was quite hotly debated between Penang and Kedah since this new international airport in Kulim known as KXP is estimated to be less than 1 hour away from the Penang International Airport which is already Malaysia’s 3rd busiest airport. First is Kuala Lumpur International Airport (KLIA), then followed by Kota Kinabalu International Airport (KKIA).

Then, everything quietened down. It is not off the table yeah. Far from it in fact. Truth is, this is something which the Kedah state government will be pursuing regardless of who is the Menteri Besar (MB). Kedah MB is Muhammad Sanusi Md Nor. Well, we have one latest news about the builder.

Article in malaymail.com
  The Kedah government signed a joint venture agreement with ECK Group today to build the Kulim International Airport (KXP). ECK will own 80 per cent of the SPV’s equity while the Kedah state government will own the remaining equity under the Kedah Development Corporation’s subsidiary, KXP AirportCity Holdings Sdn Bhd.

Kedah MB said, “We expect the KXP project will be fully completed by 2026 and after that we will be able to see huge changes to Kedah’s economic landscape.”

He also said, “This airport will be the airline industry’s recovery hub and regional disaster operations centre due to its position in the middle of South-east Asia.” He added that KXP will create between 15,000 and 18,000 job opportunities for locals. Please do read the full article here:
Article in malaymail.com

Just need to ensure KXP is also in same team as Penang International Airport

While I do not know how well both the states could work together but the more they could work together, the better it is for both sides because it’s just less than one hour away. Trying to attract the same airlines by offering very special landing fees will just kill both airports in the long run. I hope the management of both airports understand this.

Jobs of up to 18,000?

I assume this total jobs to be created will come true. As for property development and getting more people from outside Kulim to move there, my guess is that this will likely take some time. It’s like having more people staying nearby KLIA because they work in KLIA. It will definitely take some time to build the homes, to change their mindset about moving to a newer area.

All the best yeah. Perhaps Kulim HighTech Park factories would now be connected to the world right at their door step too. This is another selling point to factories who are thinking of locating their plants in Kulim as well the plants which are thinking of relocating from some other countries where the airport there is just too far away from the factory.

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Kungfu Paradise, Paradigm Mall

We wanted to go Teh Tarik Place again but it did not have dinner sets. So, we walked a few more shops and saw Kungfu Paradise. We decided to try it because my wife said that we went to a similar cafe before. I told her ‘nolah, where got.’ Haha. We went in, immediately the waiter got us a baby chair and it looked so clean that I did not bother to wipe it as usual. The menu was extensive and there was a huge highlight about their famous ‘Stylo Coffee’. I ordered it despite already having two cups prior.

It did not disappoint at all. I thought this is just a typical Hainasese roasted but in fact it is an Italian expressed cup of latte. The look was so so but mind you, the coffee was strong. In fact way too strong for my wife who declared it as ‘undrinkably bitter’. Haha. That was the highlight of the coffee. In terms of overall aroma, taste and flavour, it is still below that of Plan B or Espresso Lab. Oh yeah, someone mentioned that Artisan Roast is even better. I hope to try it real soon.

It is a good place for family and prices are also not exorbitant. Menu variety ranges from Malaysian to western to Hong Kong. I guess lots of choices. The burger is very nice. Even the Nissin noodle also just right for me. I will definitely visit again.

written on 14 Jan 2014

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Kunming to Singapore with Pan-Asian railway

Around 17 years ago, after my final exam for my degree in Bristol, I decided to travel around Europe. As a student, I was able to buy some sort of Rail Pass which enabled me to travel around Europe via railways of all the different European countries. This is an awesome way to travel because it was even possible to board the last train at night and arrive in the next country the next morning. It was not just hassle free but was very convenient as well. Of course, I was much younger then and could easily rough it out then. This is why I always feel fascinated with the Pan-Asian railway which is being encouraged by China which I think by the time of its completion would mark the beginning of China as the largest economy in the world. (nominal GDP)

I am a firm believer of ASIA as the next growth centre. Thus, the more integrated we become without the need for single currency the better. It would make even more sense to have more trades with our very own currneicesor even trading using just one world currency, the better. Reported in The Star recently, The Pan-Asian Railway linking Kunming to Singapore has received a much-needed boost with the introduction of the Belt and Road initiative. This initiative, a land-based Silk Road Economic Belt and ocean-going 21st century Maritime Silk Road is a framework put forth by Chinese President Xi Jinping to foster connectivity and cooperation among countries along the route. The Asian Infrastructure Investment Bank (AIIB) and a separate Silk Road Fund will be supporting this development. Read about AIIB here:
AIIB: Great initiative and posed to grow infrastructure ASIA

As a small nation compared to many, it is important for Malaysia to continue to integrate itself into these infrastructure plans which enables it to increase the potential of trades with all other nations within the Pan-Asian railway. Of course, in the near future, students on a budget and yet wanted to see the whole of Asia can also do as what I did; via the railway. I think this fits into the currently proposed High Speed Rail between KL – Singapore which unfortunately has been slightly delayed instead of the proposed 2020 timeline during its inception.

All these logistics and infrastructure developments will bring a lot of spillover effects besides opening up many new industries and many other sectors including tourism, trade and investment and even the SME industry which is definitely the greatest defence for any country. I dare not think what will happen to those economies where 70% or more of its economy is dependent on only the foreign direct investments or MNCs. These MNCs would normally be the first and fastest to pull out during any crisis. SMEs meanwhile will just have to survive in their own country, somehow. Happy anticipating and one day riding all the way from KL to Kunming, China.

written on 17 Oct 2015

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KWAP willing to accept 4% returns from property investments

I do not have funds huge enough to start a
foreign property investment

currently. My daughter is also too young for me to buy a property today and having to wait for 15 more years or more. Yes, if she is studying overseas, of course it would be in the UK. Sorry yeah Australian or U.S. supporters. Reported by
Bernama
, Malaysia’s second largest pension fund, The Retirement Fund Incorporated (KWAP) is however looking at property investments particularly in France and Germany, despite the current volatility. Its Chief executive officer Datuk Wan Kamaruzaman Wan Ahmad said, “We do have minimum returns that we are expecting from our real estate investments; unfortunately, the one that we are looking at, located in Paris and Germany, have below 5% ratio.”

KWAP has also revised its minimum return ratio from 5% at present to 4%. In terms of the UK, he said, “The pound sterling has weakened by 15%-20% and it actually made investments cheaper and tourism industry booms as compared to the euro. It hasn’t been that cheap therefore I quite like the UK market rather than the European market.” I think I would agree with him in the sense that the UK presents a better value proposition than many other European nations. This is despite the
looming “Brexit” application
 in March 2017. Yes, I personally do believe staying within the European Union has more advantages than to abandon the grouping simply because of immigration issues.

One good friend recently said, ‘What if the UK Prime Minister chooses NOT to proceed with the application to say goodbye?’ I smiled and said, I would hope so too but I guess it would be an extremely tough decision to make as it would be against the referendum which was won by those who voted to leave. It’s highly unlikely. Anyway, coming back to the property investments, there was no mention about any other
ASEAN nations.
 Perhaps KWAP is worried of contagion effects since ASEAN is usually seen as the same market. For my personal unit trust investments, I have chosen funds with exposure to the ASEAN market, for example Indonesia. As of now, my returns are very slightly above the 5 percent mark which I think is still okay.

By the way, Wan Kamaruzaman also mentioned something I wrote before, about the
time needed for property investment.
 “We are trying to give priority to Malaysia but slowness in closing deals is one of the constraints that we face as it can take up to a year unlike overseas’ investment which can be concluded around three to four months.” It meant that there are more red-tapes for property investments within Malaysia compared to these more advanced European nations. The state authorities should listen and quickly improve. When we talk about investments, we want to buy and wait and not WAIT very long just to buy. Agree? Anyway, I do hope KWAP is really doing lots of homework because investments should be a calculated risk and current market condition does not make it any easier.

written on 31 Oct 2016

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KWAP goes local, stocks tumble in the US and ‘please don’t resign’ news.

I happened to read Financial Daily today. Take a look at the front page. Usually, the most interesting news would be highlighted on the front page. First up is the biggest one with photo. ‘KWAP GOES LOCAL.’  Basically what this tells us is that the KWAP pension fund thinks the domestic property market offers better returns compared to its investments outside Malaysia. It’s CEO Datuk Wan Kamaruzaman sais that KWAP has investments in 31 countries currently. (Hey, 31 countries and he is putting our domestic property market in first place. That’s a good endorsement, right?)  He said so because he said that when KWAP buys overseas properties and lease it back, it’s hard to achieve 5 percent returns. However, the local properties could. Some of its recent investments if we intend to follow? It bought 8 parcels of land in
Seri Tanjung Pinang 2 (STP2A) in Penang.
(Seri Tanjung Pinang is a popular property spot in Penang. STP 2 is an even bigger reclamation than STP 1). KWAP also bought a 1.25 acre land in Persiaran Stonor (KL yeah). It bought a 0.72 acre of freehold land from Guocoland in Jalan Changkat Kia Peng too. KWAP also shared many of its favourite investment targets. They include banks, telecommunications as well as technology sectors. Its current asset allocation is 46 percent for fixed income, 40 percent in equity and 14 percent in alternative investments. Property investments are parked under the alternative investments.

Source: wsj.com (dated 25th April 2018)

In the U.S, the stock markets tumbled because the US bond yields near 3 percent barrier. (If the unit trust offers 3 percent returns for me, I will prefer the BURSA instead. Well, this may be telling us that the stock market in the U.S. is overvalued, perhaps? Depends lah coz if our P/E is as high as them, we would already be considered super over-valued. Anyway, please do take a look at the latest P/E ratio for the stocks in the U.S. and we may understand a little bit more. Except for Dow Transportation, both the Dow Industrial and Dow Utility is already above the usual analysts’ consensus estimates. In terms of dividend yields, it ranges from 1.4 percent to 3.42 percent. In other words, a 3 percent yield in the U.S. bond is considered attractive because it’s a certainty while the stock market is not just uncertain but for many of the stocks, it may not even match the 3 percent offered. Now perhaps we understand why many investors are waiting for the financial results from the companies before going back into the market.

The last news “please don’t resign” is a wish by shareholders of Public Bank Bhd to its current founder and non-executive chairman Tan Sri Teh Hong Piow. A shareholder from Johor Bahru who was in Public Bank Berhad’s AGM said this, “As a younger-generation shareholder, I need someone to look up to and no one is as qualified as you.” Public Bank has announced in July 2017 that Teh would be retiring from the position effective Jan 1 2019. Its current managing director Tan Sri Tay Ah Lek shared, “the announcement of the new chairman will be made at an appropriate time.” Tay also shared that PublicBank would continue to focus on growing low-cost deposits by intensifying cross-selling activities and tapping into its internet banking platform. Public Bank will also be opening six new retail branches in Vietnam this year.

I have learnt that the

local property market remains attractive

even when compared to the world. Anyway, this is based on individual yeah, not necessarily that everyone would agree with KWAP’s CEO. Secondly, the stock market is only as attractive as how well the companies are doing. When companies do well and they give higher dividends, then the stock prices should inch upwards. Else, it would be considered over-valued and investors may invest elsewhere. Lastly, we learnt that sometimes the founder provides a huge goodwill to the company. This could be seen from many other corporate companies and not limited to just Public Bank. Everything is related to investment. Happy learning. Cheers.

written on 26 April 2018

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Kwasa Damansara is now FAST-TRACKED.

If you do not know where is Kwasa Damansara, it is in Sungai Buloh or we could also say next to Kota Damansara. It is a huge development project of 2,330 acres on the former land of Rubber Research Institute of Malaysia and I think it’s safe to say that they really does need that 20 years which they said in order to completely develop it. Maybe more depending on how fast the property market recovers. Well, we have some good news about it recently. I have not read about it for quite some time, not sure about all of you.

Article in nst.com.my
  According to sources…

“Kwasa Land has been quiet for some time because of the economic situation and soft market conditions. This year the company was planning to call for tenders but then came the Covid-19 pandemic. Nevertheless, the company is ready now. It is in the one-meter marathon run and ready to take off.”

“When this pandemic is over and when the market starts to recover, it will assist all those developers who have bought land from the company to launch their projects. Kwasa Land will embark on marketing and adverts to promote the development.”

“The size of Kwasa Damansara is as big as TTDI and Bandar Utama combined so you can see it is a massive undertaking.

“Kwasa Damansara is a township with good infrastructure, good connectivity and there is a lot of greenery all around. If one has the idea of what Damansara Utama and Damansara Jaya is, you can get a sense of what this development is going to be.”

Please do read the full article here. Lots of other details about Kwasa Damansara too:
Article in nst.com.my

Considering the prices in Kota Damansara, I think one key element for a successful start to Kwasa Damansara is definitely to make the entry price very attractive.  Seriously, this is a long-term project and it’s best to keep moving ahead like how a traditional property developer does. First phase will be super attractively priced and the first phase all sold out quickly.  Second phase will be slightly higher and sold out pretty quickly and then so on. Seriously, if the first phase itself is ALREADY at some market price level, then I hope the property market is bullish for it to accept and move in.  As they say, do not kill the goose just because we wanted more golden eggs quickly…

Please do NOT try to launch TOO MANY things at the same time as well. No one could tell when is the next unforeseen circumstances may come and the property market grinds to a half for some months again.  Courtesy reminder that this is a 20-year development or more years… Thank you for listening if any top management in Kwasa Damansara is reading this.

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*Header image is from Kwasa Damansara website.

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Kwasa Damansara, NAZA TTDI and TWO MRT stations

There is little doubt that I personally like Sungai Buloh area compared to the Kajang area. Thats why both parts should continue to do well. I have many friends who prefer Kajang and said Sungai Buloh is ‘so far.’ Haha. Another piece of good news. Kwasa Land Sdn Bhd has just awarded a 12.7 acres site to Naza TTDI. It’s bid would allow Kwasa Land to enjoy a good net present value (NPV) return of around RM88mil. This is equivalent to RM160 psf. Naza TTDI won it after an evaluation of the bidders and the evaluation was conducted by two independent panels in two parts, namely quantitative and qualitative evaluations.

Naza TTDI’s proposal include a thematic park, contemporary designs, private green courtyards and recreational club facilities. It is a gated and guarded community with residences of four and each unit enjoys an open corner. The proposed contemporary living concept and the pricing strategy was judged as best meets market expectations. In brief, VALUE for MONEY and should be loved by the market. I think since this not that ‘near’ to KL city centre, it would attract buy with a family instead. The current piece of land, also known as R2-1 has a Central Park of 1.8 acres and it is connected to the largest park in Kwasa Damansara Urban Park which is about 42 acres. Hey, lots of green space which even I can enjoy in future.

There would also be that future proof that many are looking for, two MRT stations. These two are just 200 metres away from R2-1. Besides the greenery and MRTs, R2-1 is also connected by three current expressways and a new proposed DASH expressway as well as an adjacent Subang SkyPark air terminal.

This award is good because it meant that the master developer is not delaying but instead is continuing with its plans. I think during slower times, buyers buying for family would be a key target market. This is where pricing comes into play when location can now be enhanced by the MRT stations. My only hope is that the development is very affordable priced to get it fully sold and the development can start while at the same time, more parcels of lands are also awarded to other developers who win in the bidding / tendering process. Let’s go view when NAZA TTDI is ready with scale model or perhaps the actual unit all built-up?

written on 26 Aug 2015

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New alignment for MRT Sungai Buloh – Serdang – Putrajaya

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EPF’s Kwasa Land and YTL Corp developing a RM200 million GDV project in Kwasa Damansara.

Did you know where is Kwasa Damansara? Well, take a look at the image below. Image source:
http://www.kwasadamansara.com.my/
  Actually, it’s quite a strategic place but of course this is considered a suburb area as well. Did you know Kwasa Land is the developer tasked to develop Kwasa Damansara? Did you know EPF owns Kwasa Land? By the way, the more successful Kwasa Land is, then the profits could form part of the dividends to be paid to EPF members. That includes me as well. This is why I must write about this upcoming residential project in Kwasa Damansara.

Article in nst.com.my
   This 5.14 hectares development in the Kwasa Damansara township have 1.5 storey townhouses and three-storey landed terrace houses enclaved within a lush green space. It will have a built-up area of between 1,200 sq ft and 2,300 sq ft. The homes will feature modern and minimalistic designs.

YTL Corp executive director Yeoh Keong Yuan said, “Residents will be able to enjoy open, spacious living spaces and be connected outdoors with the stunning views of the surrounding parks and venture out to explore well-landscaped walking trails and jogging paths.” Do read the full article for more information:
Article in nst.com.my

Buy in Kwasa Damansara and working in Kuala Lumpur city centre?

Distance wise and duration wise. Google map has the information. I think it’s good enough even if during peak hours, we may have some traffic jams.

If you do not run, do you need a home where they have a park with nice jogging tracks?

Frankly, even if I do not run everyday, I still want a very nice jogging track around my home so that I could use it whenever I want to.  I could use it for walking maybe? It feels nice that I could walk to a park nearby my home and just take some nice photos to show my friends too. Let’s not forget that this could be a place for family bonding time too. This is lifestyle and it’s no longer enough to have one field of green grass and nothing else these days. This will continue to be important even if it will cost money to build and maintain.

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Lack of volatility reduces appeal? Haha… Cool comment.

Never put money into something that may go up or down FAST. Never put money into something which requires you to have higher heart beat and have to keep monitoring non-stop. Both are situations when we gamble / speculate. It’s definitely wrong to ‘invest’ money into something that could give us returns every month. No companies have their accounts audited every few weeks or even have businesses giving exceptional profits every other week. Okay, there are still many good companies for us to buy, keep and wait for dividends and potential capital appreciation. There are many companies which are already expensive by ASEAN standard. My colleague told me that he invests only in companies with PER of 10 or lower. I told him I am okay with up to 15. Yet, both of us hate speculators. For these, sometimes we may be lucky, sometime we may not be.
Why not just buy a good company instead?

The same applies to currency. Just as the fundamental of a country does not suddenly change within 30 days, why do you think a currency should keep moving up and down every month?! Let me share an amazing comment about two of ASEAN’s giants which appeared in TheStar today. Which are the two countries? One is by population, one is by trade numbers in relation to its population size; Indonesia and Malaysia. This was a comment by that amazing person. He said, “The lack of volatility still reduces the appeal of the two markets.” Volatility is supposed to be good for the investors? Supposed to be good for the two countries? Perhaps can ask the Philippines CentralBank Governor these couple of days if he agrees.
Here’s a recent news about the Peso.
 Here’s
one about the Singaporean dollar too.
Conclusions are clear. Central bankers in most countries would prefer an orderly manner in which the currencies move. This includes even
Janet Yellen by the way.

Sorry yeah, from my understanding, businesses hate volatility too. Importing materials when the local currency is weak and selling it later when the local currency is strong will kill many businesses. They certainly hate speculative activities, unless of course they are not in an actual business but prefers the speculative element instead.  Investors hate volatility. Even Mr. Warren Buffett buys stocks which he could ‘keep forever.’ Definitely not buying today, sell tomorrow, buying the day after and sell two days later. That’s definitely not investing…. Here’s
one actual definition of investment.
Yea, it clearly does not say that no volatility should be expected. However, the value of an investment is over a certain period of time. Lack of volatility definitely does NOT reduce the appeal of investing in a country. It is the POTENTIAL that should be the right focus. Happy investing, not speculating.

written on 14 Aug 2017

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Lacking in financial awareness today? Peril awaits.

My parents
saved a lot for their children
, yes, includes me as their eldest son too. Both were educators who dedicated their working lives to their students and a huge chunk of their bank savings to their children. When I started my first job, they asked me to save. They have bought insurance for me, thus my role is just to save more money so that my future is secure. For many years,
Fixed Deposit (FD) was my best friend
.
 I calculated what my salary would be when I reach 30 and when I reach 40 as well as what’s the final pay like just before I retire. It’s actually pretty good because I think I work pretty hard and increments as well as promotions to me can be considered above average. One day, I became interested in the stock market. I read more about it and as I read more, I learnt more. Then, share market became my second love, financially. However, everything became clearer to me when
I bought my first property.
After buying it, I realised that the property price increases EVERY year, even if slowly and when I compared it to my Fixed Deposit, I thought, ‘I better stop so much FD’ and start to buy one more property. More people were moving to cities and it’s called urbanisation and this urbanisation is not stopping anytime soon because Malaysia’s population continue to be YOUNG!
Not too young
which does not help but young enough to continue the growth.

Today, I read an article online about demographics shifts, especially rapid urbanisation. According to Bank Negara Malaysia (BNM) Governor, Tan Sri Zeti Akhtar Aziz, Asia’s urban population is projected to grow to 56% in 2030 from 43% in 2010 and rise further to 64 per cent in 2050. This will fuel the growth of mega cities with populations exceeding 10 million. Well,
Greater KL may be considered one huge one
coming soon where 10 million population is concerned. For these economies to continue growing, balanced growth is important and individuals must be equipped to adjust to new economic, financial and social realities that they will be facing. Lacking in awareness of different types of financial products would contribute to low level of confidence and poor knowledge of how products work. In the end, these individuals would be excluded from the complex and technology driven financial systems. Looking at the crisis that has happened, effective consumer protection frameworks would serve to protect the individual from excessive risks and this in turn would protect the financial systems from systemic risks.

What she is saying is that individuals who do not know much about the financial products yesterday may be okay but moving forward, financial knowledge is extremely important especially when these financial systems become ever more complex  and technological driven. My father used to buy and sell shares by calling to his remisier. Today, a smartphone is all you need. There used to be just a few funds to select from when you are buying unit trust. It’s either high risk, medium risk or low risk. Today, you better know a bit about the funds before you buy. Property was never thought of as a form of investment. It was more like, if I have a home, I can grow my family and I do not need to rent. Today, when you look at all the rich businessmen, property is one form of investment that they will always have. If you really are afraid of  properties, then
REIT is available
. Basically, how your life would be in the future depends not on what you do today but it depends on what you invest today. I believe career is very important but beyond that we must understand that if we intend to do as what our parents did long time ago, it may no longer be enough. Question is, are we ready for this financial journey?

written on 6 Nov 2014

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84% of homebuyers have only ONE (1) outstanding home loan. 🙂

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Spending unnecessarily is the real concern

I have forgotten how long have Malaysians been in a negative mood. From high household debts vs GDP for the past many years, to the GST beginnign last year and even the
never ending retrenchment
 news with the latest being that of a giant MNC in Malaysia,
Intel Technologies
. Well, slightly earlier, there were many reports about Malaysian households facing a tough time nowadays. Household debts have hit nearly 90 percent of GDP and is a cause for concern. Read here:
Since household debt vs GDP so high, should we stop buying properties?

Well, negative news seldom stop at just a few.

Reported in a local media recently. According to financial comparison website iMoney in their survey together with credit reporting agency CTOS on “How Well Do Malaysians Know Their Credit”, it has been revealed that 40 percent of the 3,000 respondents have high debt-to-income ratio of 51 percent and above. Let’s not focus too much on the number on the “40 percent”. Let’s focus on the “51 percent” instead. Seriously, have we done some simple calculations to understand where we stand currently? Solid ground or quick sand? iMoney said that the survey showed that Malaysians lack knowledge on credit reports. While I do not disagree but I think the fundamental issue would be
lacking in financial awareness / knowledge instead.
 Perhaps we know but somehow lacking in discipline to do something about it?

First of all, not many people I know prioritises “Emergency Fund” over that new RM5,800 handbag or that RM4,400 smartphone. No one could see how big their Emergency Fund is but everyone could see what they carry and what model they were using. This is why they say peer pressure is the major reason for overspending. Yet, my best friends have never laughed at me for the car I drive or the smartphone in my hand.

Secondly, not many people understood that
future wealth depends on what we started doing today
. Age is an advantage many would not use until they realised later in their lives. A very simple calculation. If we save just RM100 per month, with an interest rate of 4 percent per annum for 30 years, this seemingly tiny RM100 would turn into over RM70,000! Oh yeah, there’s no way you can ONLY save RM100 per month after a few working years. Get my meaning?

Third and more importantly, we take for granted that nothing would ever happen to us. Yes, protecting our wealth so that we do not
suddenly lose a huge chunk
 of it or worst still, all of it. Insurance is a must, do talk to a good agent who can advise you professionally, not that friend who had just started selling it and may be tempted to quickly earn fast money.

Oh yeah, within that same survey, the biggest financial concern for Malaysians is retirement savings. 32 percent of respondents are concerned that they would have insufficient funds for retirement while 22 percent said they are worried because of the ever rising cost of living. 34 percent indicated however that they were working to achieve their long-term goals by saving enough for a comfortable retirement.

The survey has revealed that what we fear is going to happen. Many would not have enough. Sometimes, the best defence is to attack first. We already know what may potentially happen. Are we going to let it happen anyway? Well, many Malaysians would. Do our best not to be on the wrong side of all these statistics. Happy thinking about starting.

written on 1 May 2016 (YES, I am writing this on Labour Day).

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Lagenda Properties: 282 units of landed homes sold out within days of launch

Press Release by lagenda Properties Berhad

LAGENDA ENABLES YOUNG PEOPLE TO OWN THEIR FIRST HOME AT DARULAMAN LAGENDA

Turning the tides on affordable homes, Darulaman Lagenda sees first time home buyers as young as 20 years old

Sungai Petani, 16 December 2022 – Leading specialists in developing and regenerating land for affordable housing, Lagenda Properties Berhad in partnership with Bina Darulaman Berhad has now made it possible for young people to buy and own their first home. The first phase of the Darulaman Lagenda township, consisting of 282 units of affordable landed homes, was completely sold out in a matter of days after its launch. The strong demand was backed by overwhelming support from the younger generations, with sales data indicating that 53% of purchasers were aged between 20 to 30 years old while 41% of buyers were from the 31 to 40 age group.

With prices starting from RM200,000 per unit for Phase 1, Darulaman Lagenda, the largest affordable township in Kedah, consists of landed homes with attractive features, some of which are its seamless connectivity via the North South Expressway (PLUS), close proximity to healthcare facilities including Pantai Hospital Sungai Petani and Hospital Sultan Abdul Halim, an array of convenient super and hypermarkets, shopping malls, and being surrounded by educational institutions from preschool to secondary levels including, SK Sungai Lalang, SMK Aman Jaya and Regent International School, making it the perfect location for generational living.

“Home ownership has been a constant challenge, and we see more and more people struggling to afford a home to call their own. This is why in developing our homes, we do our utmost to ensure that the lower to mid-level income groups can afford them. This is evident in the quick take-up for Phase 1 of Darulaman Lagenda and the demographics of our buyers. For example, 73% of our buyers were from Kedah and Pulau Pinang, 80% were government servants, and 97% were Bumiputera. Given that Phase 1 sold out in less than a week, we are confident that we are making progress in at least mitigating somewhat the affordability crisis in the area,” stated Managing Director of Lagenda, Dato Jimmy Doh.

“Darulaman Lagenda’s price point matches the affordability of the surrounding community as reflected by the high percentage from buyers from Kedah and Pulau Pinang. This affordability is further supported by government incentives and initiatives which also serve to motivate civil servants and young buyers to make long-term investments in the township,” added Doh.

Aimed at supporting the Government’s agenda to ensure a consistent supply of affordable homes for the B40 and M40 category, Phase 2 of Darulaman Lagenda is now launched, with another strong positive response expected given the low price point and convenient location. Lagenda remains committed to its aim of launching at least one new township per year and is aggressively expanding its horizons to enable Malaysians to realise their home ownership dreams.

— end of press release —

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Press Release: Lagenda Properties Spurs Affordable Housing with Shopee Partnership

Targets the under-served B40 while fastening digital journey
Confident of 2021 prospects with one township launched a year

KUALA LUMPUR, 10th FEBRUARY 2021
 –
Lagenda Properties
, an affordable home developer listed on the mainboard of the Kuala Lumpur Stock Exchange (KLSE), has partnered with Shopee, the leading e-commerce platform, to give homebuyers access to affordable properties on virtual platforms.

This is part of Lagenda’s mission to play a role in addressing the one million affordable homes needed, according to a
BNM statement
 which calls for measures to increase supply of these houses and improve their affordability.

With the pandemic’s heightening of technology adoption, in collaboration with Shopee, Lagenda quickens its own digital journey to bring its townships to Malaysians. Given that buyers are presently unable to physically view desirable properties,
virtual tours
 for the affordable properties have been made available. Adoption of digitalisation with virtual tours, e-commerce and increased engagement via online platforms are one of the key trends identified in
the recent PropertyGuru Market Outlook 2021
.

Amidst the current extended MCO2.0, this timely effort aims to help increase access and reduce the burdens of the B40 segment, classified as households with average incomes below RM4,849.

Through this partnership, buyers will be able to purchase cash vouchers on Lagenda’s Shopee page at RM88.88, which translate to a relief of RM1,888 for its
Bandar Baru Setia Awan Perdana
 (BBSAP) development in Sitiawan, or RM888 for the
Lagenda Teluk Intan
 (LTI), Perak development respectively.

Given that the terrace homes are priced at an affordable RM190,000 at BBSAP and RM171,000 at LTI developments, these vouchers will prove beneficial for this market segment. Both projects have a combined development area of 2,000 acres and 20,000 affordable homes, ranging from 900 to 1,390 square feet.

Lagenda Managing Director, Dato’ Jimmy Doh, said that “Through this exclusive promotion, customers will be able to browse and purchase these Lagenda properties through Shopee, and view our virtual homes, anytime and anywhere and discover attractive affordable housing we offer.

“To address the needs of this segment, we aim to launch one new township a year. This year we will focus on the project in Tapah, Perak, and, in 2022 we will develop our township in Sungai Petani, Kedah,” he added.

Shopee Regional Managing Director, Ian Ho adds that “We commend the efforts by Lagenda Properties as they embark on a digital journey with us to provide alternative access to affordable housing solutions for Malaysians. We continue to work together and look forward to forging long-term partnerships with developers such as Lagenda with a common goal of serving the local community through the power of technology.”

Whilst these are economical builds, the quality of the homes and the lifestyle facilities are not compromised. Being well-planned townships, both developments are equipped with infrastructure and essential community offerings from schools, government offices and malls. In addition, the wide ranging facilities include swimming pools, cycling and jogging tracks, badminton courts and others.

The properties available during this sale are terraced houses, semi-Ds and bungalows at both BBSAP and LTI townships. Limited units are allocated for this campaign and availability is based on a first-come, first-served basis.

This initiative in conjunction with Chinese New Year will be followed up with the Shopee 3.3 Sale next month.  To purchase the cash voucher worth up to RM1,888 at the price of RM88.88, kindly visit Lagenda Properties Official Store at
https://shopee.com.my/lagendaproperties
. Top up and use your ShopeePay wallet for a smoother checkout.

— End Of Press Release —

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LaLaport BBCC is opening on 20th January 2022. That’s… today.

My first article on Lalaport was way back in 2016.
Here’s that article.
Yes, you can feel from the article that I am pro-more malls versus stop all malls just because people kept saying there are too many malls. Please ensure BETTER malls are allowed to be built to serve shoppers like me and in the process the malls which are just not well managed should undergo transformation or just do something else. There are many such malls today unfortunately while at the same time there are malls which you find it hard to get a car park space.

Article in theedgemarkets.com
   Mitsui Fudosan Co Ltd, a Tokyo-based real estate company, will commence the operations of LaLaport BBCC on Thursday. Lalaport is part of the mixed-use development of Bukit Bintang City Centre in Kuala Lumpur. This will be the second LaLaport shopping mall overseas after Mitsui Shopping Park LaLaport Shanghai Jinqiao.

LaLaport BBCC has a total floor area of 133,000 sq m, a store area of 82,600 sq m and about 2,400 parking bays. There will be about 400 stores to be opened in stages, starting from this month. There will be a lot of Japanese brands which will be in LaLaport BBCC. They include F&B outlets like Shin’Labo and Star Child which is a nursery school that incorporates Japanese-style childcare and intellectual education.

There will also be a 1,400-seating capacity Garden Dining Food Court, along with Gourmet Street and Depachika Marche. MFBBCC Retail Mall managing director Kohei Kawashima told
City & Country
that the mall is now 70% tenanted. Please do read the article for more details:
Article in theedgemarkets.com

I am definitely one of the visitors, soon.

Will show everyone some photos of LaLaport BBCC when I visit it soon. After so much Korean themed brands, now is the time for some Japanese power as well. I have visited both countries and I have visited Japan 3 times and probably 6 different cities. I have visited South Korea once. No prizes to guess which country I prefer to visit more. I do think BBCC is situated in a popular area and it will help to build up the popularity of Bukit Bintang area further. That’s a good thing yeah. Happy shopping everyone.

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Header image from
https://www.mitsuifudosan-asia.com/news/detail/76

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LaLaport mall from Japan in Bukit Bintang City Centre by 2021

I read in Nikkei Asian Review that Mitsui Fudosan will develop a nine-storey, 45 billion yen (RM1.6 billion) mall in Malaysia together with Eco World Development Group and two other local partners. This will be its biggest project for a commercial facility abroad by a Japanese real estate development and it will be a LaLaport mall, just like those in Japan. Google “LaLaport” for more information. This new mall is slated to open in 2021 within a 78,500 sq ft metre premise in Bukit Bintang City Centre(BBCC). Read about BBCC here:
Bukit Bintang City Centre, launching second quarter 2016

Retail is not in a great shape currently. However, from the looks of the Lalaport as well as the fact that it will be within the BBCC, I think this would be serving the middle-upper segment and should do just fine. Read here:
Higher end retail still okay? Growing 3-4%

The mall will have 5 above-ground floors and four underground floors. Construction starts next year and retail space will boast five above-ground floors and four underground floors. Construction will begin in 2017. Retail space will likely total 80,000 sq. meters (861,000 sq ft). A total of 300 businesses are expected to operate within this mall including restaurants, household goods stores and fashion retailers. Annual sales target has even been set at 42 billion Yen (RM1.5 billion)

Mitsui Fudosan is also the company behind the Mitsui Outlet Park. The one nearby the KLIA? Read here:
Mitsui Outlet Park vs Johor Premium Outlet?
 It has a wide-ranging businesses including
commercial facilities, housing, office buildings and hotels. This expansion into Malaysia is because Malaysia is a growing country versus its home country. In 2014, Mitsui Fudosan generated 6.4 percent of its operating profit from overseas. Its target is to hit 12 percent by fiscal year 2017. Let’s wish them the best and to all the other Japanese companies who has yet to invest in Malaysia, the time is now. Let’s go visit this LaLaport mall, in future.

written on 25 Mar 2016

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Land & General Berhad: Higher revenue for FY20 vs FY19. Staying focused on sales.

Land & General Berhad had it’s 57th Annual General Meeting recently. kopiandproperty.com attended and we learnt a lot of first hand information. As the title says, they achieved higher revenues for FY20 versus FY19 though the number is only slightly up. Please do read on.

Press Release:  Press Release for 57th AGM

Kuala Lumpur, 23 September 2020: Following its 57
th
Annual General Meeting (“AGM”) today, Land & General Berhad (“L&G” or the “Company”) announced its results for its financial year ended 31 March 2020, which reported a marginal improvement in its revenue but a reduction in pre-tax profits.

The group’s revenue of RM139.7 million for its financial year ended 31 March 2020 (“FY2020”) was marginally higher compared to RM134.4 million for the corresponding financial year ended 31 March 2019 (“FY2019”).

Revenue was principally derived from the property division, led by the 3 on-going development projects which are Astoria Ampang, Sena Parc Senawang and Damansara Seresta. Sales and construction progress at all three (3) projects during the financial year led to the higher revenues in FY2020 compared to FY2019.

The group’s pre-tax profit was RM26.2 million for FY2020, down from RM52.9 million a year ago, primarily due to its other income being reduced by half in FY2020 because of a significantly lower writeback of provision relating to liquidation of a former subsidiary as compared to a year ago.

As Board of Directors took the view that the Group should conserve its cash resources to cushion any potential adverse economic impact from the Covid-19 pandemic, the L&G Group did not propose any dividend for FY2020.

During FY2020, the Group concentrated on developing and selling its on-going projects, which resulted in achieving higher number of units sold and sales value achieved as compared to a year ago.

Astoria Ampang Phase 1 which comprises 506 units of serviced apartment will be handed over to home buyers next month. This project comprises 2 phases of 1,012 units with total GDV of RM840 million. Phase 1 has achieved a take-up rate (including bookings) of 391 units or 77% to-date.

Sena Parc Phase 1A, located in Senawang, comprises 163 units of double storey terrace link houses with GDV of RM79 million, was handed over earlier this month with a take-up rate (including bookings) of 150 units or 92%. The Group plans to soft launch a new Phase 1C comprising 54 units of double storey terrace link houses with GDV of RM27 million this month.

The Group’s other on-going project is Damansara Seresta located in Bandar Sri Damansara, comprising two (2) block of 452 units of condominium with GDV of RM450 million. The take up rate (including bookings) for this project is 213 units or 47% to-date. This project is expected to be completed in 2022.

For the next calendar year, the Group plans to launch 2 new development projects namely Aria Rimba in U10 Shah Alam, and as yet unnamed project located at the former Sri Damansara Club in Bandar Sri Damansara.

Aria Rimba will be a 112-acres township development with estimated total GDV of RM1.2 billion. For next year, L&G is expected to launch Phase 1A (150 units of double storey terrace houses) and Rumah Selangorku Type A (162 units of medium rise apartments) with a total GDV of RM107 million.

The Sri Damansara Club project will be a 14-acres mix development located along Persiaran Perdana from the group’s head office in Bandar Sri Damansara with an estimated total GDV of RM2.0 billion. For next year, L&G plans to launch Phase 1 (732 units of high rise serviced apartments) and Phase 2 (602 units of affordable Type D units) with a combined GDV of RM570 million.

“For next year, we will launch Phase 1A of Aria Rimba project in Shah Alam comprising 150 units of double storey terraces and 162 units of medium rise Rumah Selangorku apartment. Sri Damansara Club project is a transit-oriented development (TOD) development project in Bandar Sri Damansara, whereby the MRT2 station is less than 400m away, and it will be connected by a sheltered link bridge from the station to the development. When these 2 projects are launched, the L&G Group would have a total of 5 development projects on offer to the public”, says Mr Low.

L&G remains in a healthy financial position with cash reserve of RM110 million as at 31 March 2020, and net gearing ratio of only 0.09 times of its shareholders’ funds. “Our focus for the rest of the year and next year will remain on sales. The Home Ownership Campaign 2020 together with the current low interest rate environment should help stimulate demand. With Phase 1 Astoria Ampang and Phase 1A Sena Parc now completed, and with the 2 attractive developments coming on-stream next year, we look forward to better sales and better financial performance next year” says Mr. Low.

— End of Press Release —

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Land cost of 13% vs GDV? Higher flexibility for property prices

Last week, GAMUDA announced that it’s wholly-owned subsidiary, Setara Hati Sdn Bhd is in progress of acquiring a piece of 257.2 acre leasehold land in Tanjong 12, Kuala Langat. Total acquisition cost is RM392.2 million. For those who has not been following land acquisitions, this is considered quite a huge number, both the land size and the price of land. The reason is also because GAMUDA is considered a big developer and not the average ones. I did not write about it as I feel that there’s no new knowledge for my readers. This week however, the new announcement gives a very good knowledge of land cost versus gross development value (GDV) in Malaysia, today. It is said that the GDV is expected to be RM3 billion over a period of 20 years. In percentage terms this is around 13%. What does 13% mean to the GDV? Well, one thing is for sure, the developer has more flexibility in pricing of the properties it is developing.

Reason for this? Well, in some countries, the land cost can be 40% or even as high as 60%. Yes, in Singapore, the land cost vs GDV can be 60%. In other words, should the market plummets when the developer is ready to build, that developer may be building for free or else they have to pay interest for that piece of land and not do anything until the market recovers. If the construction costs are assumed to be almost the same except for the exchange rate, it meant that GAMUDA has much higher flexibility in the pricing of its projects compared to the developers in Singapore which may have a land cost of 60%. Oh yeah, the number has been increasing over the years. You may want to see Mah Sing’s land cost vs GDV here:
Cost of Land increasing vs GDV
 It has shown an increasing trend of the land cost vs GDV.

Of course, do note that the GDV numbers may continue to increase because the property prices that the developers can price them would definitely be on an increasing trend too. In other words, the 13% land cost vs GDV for GAMUDA’s piece of land would be lower by the time they reach the year 10 of their development etc. Unless of course a financial crisis happen, then perhaps the property prices may go down etc but otherwise, 13% is a very good number indeed for land cost.

This brings us to a question. If it is indeed that good, then it’s best to be a developer in Malaysia than in Singapore or other developed markets, right? Haha. Yes, given a choice of developing in the Klang Valley vs Singapore, I think majority of all developers may choose to develop here. This is more so for the smaller ones because it’s quite impossible for them to buy the land in Singapore because it is in SGD which meant even the land cost itself is prohibitive. However, imagine this, for the same amount of work over 3 or 4 years, your earnings would be in SGD instead of RM. If you are a listed entity, your profits once converted back into RM meant a huge jump, easily even if the the investment is higher as well. That’s why there are still many Malaysian developers developing out of Malaysia including Singapore, Australia and even Battersea in London. Happy buying and knowing.

written on 3 Dec 2014

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Press Release: Land & General Bhd & AFFIN Bank Offers HOME STEP FAST Programme

“Why should I go for a smaller property if I can buy a bigger and better property with the right financial tools!”
Choose a property that right for you with your preference such as location, amenities & sizes meet your needs is now no longer a dream.

The HOME STEP FAST by Affin financing solution aims to make owning sweet home more accessible by offering one of the lowest monthly payments where allows payment of only interest portion for the First 5 years, this will also help younger buyers to finally attain their dream home.

Land & General Berhad (L&G) has entered a collaboration with Affin Bank to offer HELLO campaign as another financing solution to their potential homeowners with the tagline of “HomeOwnership Made Easy, Pay Less Save
More”

L&G is introducing this HELLO campaign powered by HOME STEP FAST financing solutions to its all current projects namely Astoria Ampang (Jalan Ampang), Damasara Seresta (Bandar Sri Damansara) and SenaParc (Senawang Seremban) with the combined GDV of more than RM1.5 billion embodies an unique concepts which are the SIGnature Collection in introducing the nature-inspired design homes to create a future for healthy lifestyles and sustainable living.

The 6.23-acre freehold condominium Damansara Seresta, offers build-up range from 1,291 to 3,165 sq.ft of 3~5 Bedrooms layout from only RM630 psf. Damansara Seresta are inspired by its natural surroundings (next to Bukit Lanjan, Bandar Sri Damansara), with features facilities of cascading waterfall, courtyard garden, tree house, pavilions, sky gym, roof garden and a 325m forest trail and deck.

Astoria Ampang, designed by Malaysia Top-10 Architect, located off Jalan Ampang 4KM away from KLCC & Pavillion, with the vitality and variety amenities including 20 Embassies, 9 Educational Institutes & 6 Medical Centers. Astoria

Ampang has garnered Best Residential Landscape Architecture (Asia Pacific Property Awards) offers the biggest (approx. 3 acres) landscape & waterscape in the KL city to create an ambience abundant to the residents.

Only 7 units per floor, 253 apartment residence of between 1 to 4 bedrooms in built-up of between 560 sq.ft and 1,505 sq.ft. Astoria Ampang Phase 2 price from RM680,000.00.

SenaParc, located at former Tuanku Jaafar Golf and Country Resort Seremban, one of the largest lifestyle residential development in the vicinity featured 8 thematic Park spread within the 220-acre freehold township, offering 20’ x 70’ to 22’ x 75’ 2-storey terrace house start from RM457,000. Also upcoming Semi-Dee project are in the pipeline.

L&G aims to make continuous improvements to neighbourhoods and townships as lifelong commitment, to grow and gain together with the buyers where the tagline of : BUILDING VALUE FOR TOMORROW.

For more information on L&G HELLO Campaign :-

Land & General Berhad (5507-H)
8trium, Level 18, Menara 1,
Jalan Cempaka SD12/5,
Bandar Sri Damansara
52200 Kuala Lumpur, Malaysia
0362798000

-End-

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Press Release: Land & General Berhad 58th Annual General Meeting Press Release

Full year results

? Group posted full year revenue of RM134.9 million for the financial year ended 31 March 2021

? Compared to RM139.7 million in the previous year, Group’s revenue for the year was marginally  lower

? Marginally lower revenue was due to vacant possessions handed over for two projects, namely  Astoria Ampang Phase 1 in Ampang and Sena Parc Phase 1A in Senawang, Negeri Sembilan

? Group’s full year profit before tax was RM38.3 million for financial year ended 31 March 2021

? Compared to RM26.2 million in the previous year, Group’s profit before tax for the year was 46%  higher

? Higher full year profit before tax was due to:

o higher sales and progress billings from its on-going Damansara Seresta project located in  Bandar Sri Damansara; and

o lower development cost incurred arising completion and handing over of Astoria Ampang  Phase 1 and Sena Parc Phase 1A mid-way through the financial year

On-going development projects

? L&G Group presently has 3 on-going projects, namely:

o Astoria Ampang Phase 1 comprising 506 units of service apartments located in Ampang,  Selangor;

o Sena Parc Phase 1A comprising 163 units units of double storey terrace houses in Senawang,  Negeri Sembilan. Phase 1C comprising 54 units of double storey terrace houses was recently  launched in May 2021;

o Damansara Seresta comprising 452 units of condominium located next to Bukit Lanjan Forest  Reserve in Bandar Sri Damansara.

? Vacant possessions at Astoria Ampang Phase 1 and Sena Parc Phase 1A were both handed in  September 2020.

? The number of units sold as at 31 August 2021 for its on-going projects are:

o Astoria Ampang Phase 1 (total 506 units of service apartments) – 390 units or 77%

o Sena Parc Phase 1A (total 163 units double storey terrace houses) – 158 units or 97%

o Sena Parc Phase 1C (total 54 units double storey terrace houses launched in May 2021) – 7 units or 13%

o Damansara Seresta (total 452 units of condominiums) – 288 units or 64%

Upcoming launches

? The Group plans to launch two new project phases for the remaining of this financial year ending  31 March 2022, namely:

o Astoria Ampang Phase 2 (506 units of serviced apartments in Ampang); and

o Sena Parc Phase 1D (162 units of double storey terrace houses) in Senawang, Negeri Sembilan

? The combined Gross Development Value for the planned launches above (and including Sena Parc  Phase 1C which was launched recently in May 2021) in this financial year ending 31 March 2022 will  be in excess of RM450 million

Dividends declared

? The Board of Directors of L&G is pleased to announce that the shareholders have approved a final  single tier dividend payment of 0.5 sen per share in respect of financial year ended 31 March 2021. Entitlement date and payment date have been fixed on 5 October and 18 October 2021 respectively.

-End of Press Release-

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Land price going higher, home price going higher, right?

Do we believe property prices are going up because developers had to pay ever higher prices for the land which the development is to be built? I do not think so but my opinion does not matter. Let’s look at some numbers. The below is a very clear image showing how land price increase seem to also be a major reason why property prices are increasing too. At least for Selangor. Numbers are fromCIDB, NAPIC and
www.brickz.my (Yes, I refer to this site a lot for information.)

Image source: iproperty.com.my

The image is part of a
Very comprehensive article. Happy reading it in iproperty.com.my here.
 I love what the writer, Dr. Foo Chee Hung said in this following few lines. He has explained is very briefly and yet so easy to understand that the current prices are not primarily due to just land costs yeah, not even other material costs for example.

He wrote, “Based on Figure 1 (below), we can see that costs for the elements of development such as labour, materials, machinery and equipment have increased only slightly in the same period. Such disproportionate increases have led to the conclusion that – the developer’s profit margin increase and the inefficiency of the country’s housing construction industry are directly responsible for the skyrocketing house prices. While this is inevitable, one should not overlook other elements of development cost, particularly the impact of land cost on house price.”

Image source: iproperty.com.my

Please do refer to the long and comprehensive article for
reference reading yeah. the article in iproperty.com.my here.

Of course, we must also note that property prices could also rise during those periods of 2008 – 2012 because prices then and the prices now are worlds’ apart too. In 2007, I bought a condo of 1,258 sq ft in Penang for RM247,000. Then, in 2008, I bought a condo of 1155 sq ft in Kelana Jaya for RM183,000. See those prices? Today, it’s more like 2.5 times higher. It’s really not possible to expect it to be another 2.5 times higher because salary did not rise suddenly over a couple of years yeah. Yes, I am very happy if
prices could just follow the salary increment % moving forward. (Read here)
Happy understanding.

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Land prices, new projects and debts vs GDV

Reported in a local English daily. How much is a piece of land measuring around 144,000sf? It is said to be worth between RM360 million to RM400 million. Yes, this is ONLY the land price. Construction is a totally different thing altogether. Of course, this piece of land is very close to Petronas Twin Towers. This piece of land can thus only be acquired by developers with very deep pockets or KWAP (Retirement Fund Inc). The actual site is where Lai Meng school is situated in Jalan Ampang. Magna Prima, the land owner bought it for RM148.2 million in cash just 5 years ago or around RM1,350 per sf. If they are able to sell even at the lower end, their profit is tremendous. Of course, one additional clause for the land purchase then was that Magna Prima must rebuild a new Lai Meng school in Bukit Jalil.

If you think the land price is so high, well, the plan for Magna Prima previously was to build a 60-storey twin towers on the land with a combined Gross Development Value of RM1.8 billion. They have gotten approval for a plot ratio of 1 to 12 for that piece of land. It meant the total development size can be 12 times the size of that piece of land. In the report, it was said that perhaps the project was way too big for Magna Prima. As at end 2014, Magna Prima has borrowings of over RM500 million and taking up this project is likely to be overly ambitious, unless a bigger partner comes along. Then again, joint ventures are never easy. Thus a more natural choice may be to sell for a big profit and use the proceeds for other investments.

This report in the online newspaper showed that taking up huge projects are not as easy as it seems and unforeseen circumstances would always force developers to rethink their strategy. This is the reason why when we look at the gearing ratio of many developers, even the big names, as soon as they venture out of Malaysia or undertakes a huge local development, their gearing ratio shoots up. Debts have to start before profits would come. Add to this would be the current uncertain property market and negative sentiment as what could be seen in Facebook everyday; complaints, complaints and complaints. Oh yeah, interest in the Malaysian property by foreigners are definitely waning for now. So, any developer trying to build ‘luxury’ must be very well connected or has a very comprehensive marketing plan. I would still look forward to the actual plan for this piece of expensive land. If there are news, will blog about it.

written on 6 Apr 2015

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Land sale is affected by many reasons. Here’s a RM1.1 billion deal which did not happen

Why do land sale happen? Well, to the owner, they prefer cash versus holding on to the land plus they may not have anything better to do with the piece of land. To the buyer, they prefer to buy the piece of land versus keeping their money because they are able to develop the land and maximise their returns versus holding on to the cash and just waiting for the pitiful returns.

Sometimes, the land owner and the buyer may just do a joint-venture instead. This has happened in many land deals in Malaysia. We even had one recent one which was also quite viral.
RM200 million land sale gives happiness to both the buyer and the seller
 Now, we have another one which is a much bigger deal than the RM200 million one. This one’s RM1.1 billion deal. Alas, it did not happen too.

Photo by Pixabay on

Pexels.com

Article in edgeprop.my
 The land is a 96.28 acre piece in Pulai, Johor. The seller is Iskandar Waterfront Holdings Sdn Bhd. The buyer is Ekovest. The price for the land was RM1.11 billion. It was announced in November 2019. The article also quoted Covid-19 as having an impact to the property market. This was what the buyer (Ekovest) said, “Although the parties have continued to reassess and renegotiate the terms of the proposed acquisitions after the lapse of the conditional period on Feb 20, 2021, the parties were unable to reach an agreement to-date and have therefore decided to allow the sale and purchase agreements to lapse.” Do read the fuill article here:
Article in edgeprop.my

COVID-19 is involved in most land deals I believe
?

Some land owners may be more open to selling their land currently without feeling too arrogant about some negotiations. Some land buyers may be more willing to buy land now because the prices are definitely lower than during the crazier days. If we look at the number of residential property transactions, it is definitely attractive for developers who are able to develop homes which everyone needs. This is why the turnaround time from buying a land to starting the development becoming shorter. Not many are buying the land to keep these days. Cost of holding is just too high too, not to mention the repayment for the loan to buy that land.

We will continue to read about more land deals, that’s for sure. More developments would continue to attract more people to buy a home they like at a price they could afford. Happy reading and if you like to keep track, just subscribe to kopiandproperty.com yeah. Take care.

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RM200 million land sale gives financial happiness to both the seller and the buyer.

If we have a choice, we would always strive for a win-win situation. For a property transaction to happen, the seller would have to sell at a price which is equal to or above his minimum objective expectation and the buyer would have to be buying at a price equal or below what he was prepared to pay for that particular property. In other words, the transactions would make both the seller and the buyer happy.

Recently, we have a land sale in Jalan Khoo Kay Kim which should be making the seller and the buyer happy. Generally, the reason why the seller wants to sell can vary but the reason why a property developer wants to buy a land? That’s an easy one. They are looking to develop the land! This time, it’s a prime piece of land in Section 13, Petaling Jaya. Let’s get to know the details.

Article in theedgemarkets.com
  UEM Land Bhd has entered into a conditional sale and purchase agreement (SPA) to buy a 9.93-acre leasehold piece of factory land and the buildings thereon from Dutch Lady Milk Industries Bhd at Section 13, Petaling Jaya for RM200 million. It plans to build a RM1.3 billion mixed-use development there.

UEM Sunrise chief executive officer Sufian Abdullah said, “What attracted us most about this land is its location within the Draft Special Area Plan Section 13 Petaling Jaya, identified by Majlis Bandaraya Petaling Jaya to redevelop the area into a commercial hub as part of its urban renewal efforts.

“With the land strategically located in Petaling Jaya, its proximity to the central business districts and the education hub, we want to accommodate first-time homebuyers, young or small families and customers looking for investment opportunities in targeting short- or long-term tenancies by young professionals and students in the various universities and colleges nearby.”  Please do read the full article here:
Article in theedgemarkets.com

Why would the seller (Dutch Lady) be happy?

There were no information as to what was the price which Dutch Lady bought the piece of land for BUT, Dutch Lady has been there since 1963. I hope everyone could immediately understand that the RM200 million is definitely a great price to sell for because Dutch Lady is a manufacturer and they are not a property developer who could develop piece of land even if they (Dutch Lady) wanted to. Better stick to what they do best.

As for what they could do with the money, they could actually use it to buy a much bigger piece of land somewhere further away from some prime location and pay a much lower price too. In a report last year, Dutch Lady was said to be purchasing a piece of land in Bandar Enstek, Negeri Sembilan for RM56.79 million and the land size is 32.6 acre. The piece of land they currently occupy and is selling is just 9.93 acres.

We can see that they money they gain is many times higher than the money they intend to spend (for new piece of land) and the new piece land they intend to purchase for their new manufacturing plant is many times bigger than the land they are going to sell. Definitely a happy news for them on both fronts; price and size of land.

The buyer is definitely happy.

The gross development value (GDV) for the development on the piece of land is definitely going to be at least 5 times or higher based on typical land price vs GDV. In other words, they get to develop on a prime piece of land where the sale of all the units would usually be faster versus if they had bought a piece of land somewhere much further away where the demand is likely to be weaker and the time needed to sell is likely to be higher.

Thanks for reading and understanding the situations facing the buyer and the seller.

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Land scarcity or abundant, which one is better?

This is a continuation of an article comparing Penang island versus mainland. Part 2/4. You can write article 1/4 here:
Penang Island vs Mainland (Part 1/4)
  It is written by the founder of
penangpropertytalk.com
, Mr. Ken Lim. I think it’s important for everyone to consider the many facets of how property continues to evolve in Penang. Never mind whether you are a supporter of the current or the potential upcoming ones. Read, digest and decide.

-Start-

Scarcity of land is one of the most common explanations given by those looking to invest or having invested into a property in Penang Island. Many people seem to have convinced that since the island is running out of development land, prices of houses should increase at a much higher rate than any other places, including mainland.

Theoretically, the assumption is correct and that the land price increases are often sustainable too. But one should also be clear with their property investment objective. Are you looking to invest into an expensive property or a property with high investment value? Land scarcity will result into higher property price, but not necessary property with higher return on investment.

In reality, as the property is getting more expensive, a higher price resistance among the buyers would be seen. Especially when it goes beyond the psychological price limit of the majority, people will need more time to accept the higher limit. The chart below shows the average transacted price and average price movement, based on the combination of 3 most popular residential property types – Condominium, 2-3 storey terrace and 2-3 storey semi-detached houses.

The data from NAPIC clearly indicated that the residential property transaction in the mainland has shown a higher degree of positive price movement as compared to the properties in the island.

Under the influence of land scarcity, some people has opted with the “buy first, think later” strategy and believed that if they don’t buy a property in the island today, they might lose the opportunity later. Some went to the extent of buying property at western part of the island without having a clear objective in mind. Of course there is nothing wrong if that is planned for own stay. But for investment, bear in mind that all houses built are eventually meant for human habitation. The livability of the property and location should be the utmost priority.

One should focus on the investment objective and land scarcity ought to have the least influence here. If your objective is to own a property in Penang Island as a brand, and that you admire a busy urban lifestyles, north east district of the island is probably your best option. But if you don’t mind to spend additional 10-20 minutes traveling to your workplace, the abundance of land in mainland may be able to offer you a more relax lifestyle with myriad of outdoor activities that your whole family can enjoy in the future. Most importantly, it is likely to cost less than half the price that you will be paying in the island.

It is my firm belief that the increases in property price have very little thing to do with scarcity of land. Whether it is in the island or mainland, a general uptrend in land prices will inevitably results in more expensive houses. However, a sustainable property market price is when people are convinced and perceived that the premium they have paid is reasonable for a lifestyle the house will bring them. If the upcoming Eco Marina by EcoWorld in Batu Kawan is priced similar to the island, an admirable yet elegant living lifestyle is anticipated.

-End-

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Landed residential 20 x 60 for below RM80,000.

Beginning June 5th, the following would happen in Negri Sembilan. The poor regardless of bumiputra or non-bumiputra can purchase landed residential 20 x 60 for RM80,000 or lower. Yes, this is not a fake news like some recent ones. This was announced and reported in The Star recently. A reader even dropped me an email asking me if the policy can be implemented. My answer was, YES, it can be implemented as long as there are subsidy from the state government for these units OR the costs can be passed on to the consumers of non-affordable units; the normal priced ones.

In Negeri Sembilan, beginning June 5, all new houses being built must comprise of 50 percent affordable ones. From this 50% affordable ones, 15% must be priced below RM80,000 and another 15% below RM250,000. The remaining 20% must be priced below RM400,000. The remaining 50% can be priced at ANY price as per the developer. Bumiputra quota is now 50% instead of 30% previously. For the houses being priced RM80,000, it must be landed residential units not smaller than 20 ft by 60 ft. There are no further bumiputra discounts for these units and it can be bought by any qualified buyers and not necessarily a bumiputra.

A check online showed that property prices in Negeri Sembilan remain lower when compared to Selangor or KL but RM80,000 for a landed is certainly a tall order. Some developers who is not able to pass the cost to the other units for the remaining 50 percent is going to cut corners and provide shoddy units. I think for smaller developers, this is not doable altogether because their smaller gross development value meant their total profits are likely to be lower and it is even harder to use the more expensive units to cover these affordable units. Land cost, when we look at the Selangor and KL land deals thus far remain low, most of the time between 15-20% but as per the article in The Star, it can go up to 30% for these Negeri Sembilan projects. I think main reason is also because the house prices there remain lower than what can be priced in KL or Selangor.

Negeri Sembilan state government said that this new policy was only after consultation with the state’s Real Estate and Housing Development Association (REHDA). If this is the case, I think REHDA Negeri Sembilan might have found a formula for their members to be able to do it. Of course, if this is proven to be doable, rest assured that many other state governments would be following Negeri Sembilan. This is because for EVERY project, half of it would be affordable units! In other words, the affordable units responsibility is now also loaded onto the shoulders of private developers. If they can do it, of course it is a win-win situation. If they could not, well, soon there would be lesser new launches and in the future, sorry to say but house prices will definitely rise. When demand remains the same but supply goes down, house prices can only go up. I wish both the state government and the state REHDA all the best.

written on 13 June 2015

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