Written by Jonathan de Ho
Lets see some of the facts on Airbnb on Malaysia.
1. Growing Rapidly - Malaysia is enjoying 130% y-o-y growth in terms of Airbnb listing in Malaysia.
2. In Malaysia, home-sharing services remain unregulated.
3. Revenue from Airbnb, should it be take into calculation for income tax purpose?
While all these regulation and taxes issues is yet to be regulate, it seems Malaysia is enjoying this period. But beware on your investment into this module. I foresee this will not be a long term strategy as you have to take into consideration of the safety of local residence, housing regulation and high rise community regulation. Especially to those under HDA regulation, they have the highest chance of being phase out if action is taken. Airbnb attract a lot of stranger into the residential community, safety issues have to be taken seriously into consideration. Consider there is always new faces in where you stay, with your love one, do you feel safe when you are away?
Perhaps those property not regulate under HDA will be a safer bet. Anyhow, while Malaysia still Boleh, perhaps those involve should take into consideration how fast you get back your investment and start profiting. Is it worthy for you to spend the time and effort with the return you get? Also taking rental income into taxes inclusion.
So is it good or bad for Airbnb in Malaysia so far? What do you think?
Here I share the article on Airbnb in Malaysia 2017. Article is refer from www.edgeprop.my
Airbnb listings in Malaysia increasing rapidly
Uber. Grab. CouchSurfing. HomeAway. Airbnb. Having taken the world by storm, the adoption of the sharing economy has been pushed forward by factors such as trust, convenience and a sense of community, according to accounting and consulting giant PwC in its “Consumer Intelligence Series: The Sharing Economy” report.
As of July, Airbnb has about 18,000 active listings in Malaysia, which is a 130% y-o-y growth, says Airbnb Southeast Asia, Taiwan and Hong Kong country manager Robin Kwok.
Offering income opportunities
Kwok tells TheEdgeProperty.com that there are more than four million listings on Airbnb, in 65,000 cities and 191 countries globally.
“This figure means we offer a huge variety of accommodation options depending on what travellers are looking for — whether it’s a spare room in a host’s house, an entire place to themselves or a serviced apartment. Hence, there’s plenty of space and opportunity for different types of hosts to benefit from Airbnb,” she says.
The majority of hosts — in Malaysia and around the world — use Airbnb to share the primary space in which they live.
“[On average], a typical host earns RM5,569.20 [annually] and many hosts tell us that this is a vital supplemental income, helping them support themselves as well as their families and make ends meet.
“Our hosts come from all walks of life. Some are freelancers, who use the extra [income] to pursue their own passion or start their own businesses; others are senior hosts who use the additional income to support themselves in their retirement. Home-sharing is also an opportunity for them to be an ambassador of their own city,” she adds.
Founded in San Francisco, US, Airbnb has seen a 231% growth in guest arrivals to Malaysia in 2016 — 638,000 travellers to Malaysia last year utilised the online hospitality service, Kwok says.
“Unsurprisingly, Kuala Lumpur is a huge draw, with a 201% y-o-y increase in inbound guest arrivals, but people from all over the world are also attracted to lesser-known tourist spots, such as Ipoh, Cameron Highlands, Port Dickson and Lumut,” she adds.
At the same time, Kwok notes that Malaysians are equally eager to experience life as locals around the world where Airbnb saw a 169% outbound increase from 2015, with Tokyo, Osaka, Taipei, Seoul, Kyoto and Bangkok being top destinations.
“Malaysians aren’t just using Airbnb to see the rest of the world; they’re also exploring the best of what their own country has to offer. Domestic travel is also thriving, with KL, George Town, Ipoh, Melaka and Johor Bahru emerging as favourite destinations [among Malaysians],” she adds.
The significant market for the home-sharing leader plays a key part in Southeast Asia’s tourism growth.
“We can continue to grow in Malaysia because tourists increasingly want unique and authentic experiences when they travel. Known for its rich culture and traditions, it’s not surprising that Malaysia is particularly popular and one of our top destinations in Southeast Asia,” shares Kwok.
Wait… Is Airbnb legal in Malaysia?
In the Asia-Pacific region, Japan is the first to legalise home-sharing in June 2017, allowing proprietors to let their properties to guests for up to 180 days a year. Homeowners will have to register with local authorities and are subject to the local government’s restrictions and rules.
“This is an important milestone that gives hosts — and people who want to be hosts — in Japan the clarity and certainty they need. It’s also great for guests who increasingly want new, adventurous and local experiences when they travel,” says Kwok.
Besides Japan, Airbnb has reached agreements with policymakers in over 275 jurisdictions where London, Chicago and Tasmania have passed “fair and progressive rules” for home-sharing, she shares.
Meanwhile, in Malaysia, home-sharing services remain unregulated. Kwok says Airbnb “is having meaningful and productive conversations with Malaysian authorities, who are excited by the prospect of home-sharing and the benefits Airbnb is already bringing to tourism in Malaysia”.
“We look forward to working with them [Malaysian authorities] to help them maximise this potential to allow everyone to get the best out of home-sharing,” she says.
The firm is also aware that every city is unique and has its own set of challenges and priorities. “What works in Tokyo may not work in Chicago, and what suits London might not be right for Malaysia. That’s why we strive to work closely with governments and policymakers in every city we operate in to develop clear and simple frameworks that work for them while addressing local needs.”
Airbnb wants to pay taxes
Working closely with governments also means paying taxes. “Airbnb wants to pay taxes,” Kwok stresses.
“We’ve partnered with governments all over the world to make it easier for our hosts and guests to pay their fair share.”
“As of May 1, 2017, we have collected and paid more than US$240 million (RM1.03 billion) in hotel and tourist taxes on behalf of our host community, ensuring a simple and streamlined process for them and lightening the administrative burden for authorities.
“We’re continuously working with governments and policymakers around the world to expand our programme and find a proper way to collect fair tax revenue from our host community — and Malaysia is no exception.
“Travel and hospitality in Malaysia are showing no signs of slowing down, and we believe in working hand-in-hand with governments to develop fair regulation and taxation to help contribute to this positive and sustainable growth,” she says.
On news reports of guests having caused damage to Airbnb hosts’ properties, Kwok states that out of more than 30 million trips in 2016, significant property damage — claims reimbursed that are over US$1,000 under its Host Guarantee programme — was reported in only 0.009% of stays.
“At that rate, you could host a new reservation every single day for over 27 years without expecting to file a significant property damage claim under our Host Guarantee,” she adds.
Clashing with the hotel industry?
There have been more than 200 million guests using Airbnb worldwide since it was founded in 2008. However, Kwok says that “even as more people share their homes, traditional hotels around the world continue to take in robust profits with consistently high occupancy rates”.
“We believe that for us to win, no one has to lose. Home-sharing helps more people travel, meet new people and experience different cultures, and that should be good news for everyone.
“Around 74% of Airbnb listings are outside of traditional hotel districts, so travellers get to experience neighbourhoods that they otherwise would not have seen,” she says.
According to Kwok, Airbnb’s mission is to democratise travel including in Southeast Asia.
“Travellers are no longer satisfied with the usual cookie-cutter experiences and increasingly want to live like a local — discovering hidden gems that only locals know about and having a more social travel experience.
“By giving curious travellers the opportunity to explore cities and communities outside the traditional tourist traps, Airbnb is driving more footfalls to local businesses that don’t normally benefit from tourist spending.
“With Airbnb, guests also tend to stay longer in cities than when they stay in hotels — 4.2 nights compared with 3.6 nights — and spend more during their stay, supporting local coffee shops, boutiques or independent bookshops. The increased economic activities are great boosts for cities around the world,” she claims.
Charting further growth
Until recently, the home-sharing platform has been about homes, transforming people’s travel experiences through where they stay.
“Last year, we launched Trips, where we expanded beyond accommodation. Trips brings together amazing homes, authentic local experiences, tips and recommendations from local insiders and social events all into one place, and all powered by local people.
“Specifically for Experiences (which is one of the features under Trips), travellers can book unique activities — designed and led by local experts — that you won’t find anywhere else, like a pottery-making class at Singapore’s last remaining dragon kiln, or a Muay Thai master class in Bangkok led by a professional fighter,” she says.
Airbnb has over 1,800 Experiences available to book in more than 30 cities. This includes Singapore, Bangkok and Ho Chi Minh City — all launched this year — and it hopes to have Experiences in 50 cities by end-2017.
This story first appeared in TheEdgeProperty.com pullout on Aug 18, 2017
WHAT does the term “affordable homes” mean? After all, what determines whether a house is affordable is based on the income of the targeted consumers.
According to Khazanah Research Institute and Bank Negara Malaysia, the sign of a well-functioning and affordable home market is when the median price for the housing market is three times the gross annual household income.
Bank Negara would add that the monthly payment for the house should not be more than 30 per cent of the income. Payments of more than 30 per cent would be considered overburdening for the consumer.
Based on the above criteria, Bank Negara would suggest that an affordable home in Malaysia, based on the monthly median income of RM4,585 and the annual median income of RM55,020,
is between RM165,000 and RM242,000.
In Malaysia, house prices are 4.4 times the median income. Further, zeroing in on the states, house prices in Kuala Lumpur are 5.4 times, 5.2 times in Penang Island, 4.2 times in Johor and in Selangor, four times the median income.
While, according to Bank Negara, the affordable home is priced at RM242,000, in actual fact, the average price of houses in Kuala Lumpur is RM490,000; in Selangor RM300,000; Johor, RM260,000; and Penang Island, RM295,000. To put it simply, houses in Malaysia are simply not affordable.
Efforts should be made to reduce the prices of houses to an affordable range of about RM250,000 to RM300,000. Yet in 2014, only 21 per cent of new housing launches were priced below RM250,000.
There was a gross oversupply of houses above RM500,000 and an undersupply of houses below RM250,000. No wonder there is a mismatch between demand and supply.
Bank Negara would suggest that between 2012 and 2014, there was a housing supply average of 85,000 units, while 118,000 households were formed.
Instead of putting policy interventions into place to reduce the prices of houses, developers are putting pressure on banks to give loans to consumers who cannot afford these expensive homes.
They want banks and Bank Negara to ease lending practices to make it easy for house owners to own properties. The principle seems to be not to build houses that consumers can afford, but to build overpriced houses, and then put pressure on the lending institutions to give loans to the consumers.
Never mind the risks to the banks and the financial burden to consumers. Developers want to sell the overpriced homes that they have built.
There have even been proposals to set up a fund so that consumers can save early to afford overpriced homes. The risks and burden is being pushed to the banks and consumers, while developers can continue to build overpriced homes.
The Federation of Malaysian Consumer Associations (Fomca) calls on the government to ensure that priority is given to homes Malaysians can truly afford. The number of 1Malaysia People’s Housing (PR1MA) homes being built is way below the demand for new households.
The government needs to intervene and regulate the private sector to supply more affordable homes. The government also needs to strengthen measures to eliminate speculation in the market, which inflates home prices. Polices should make speculation expensive to protect first-time home buyers.
Housing is a basic right of consumers. It is the government’s role to ensure that all Malaysian have access to affordable homes. The government should also focus on promoting a thriving rental market so that renting becomes a viable option for consumers.
Fomca proposes that government invests more in financial education for all consumers, especially young workers, to create awareness and build knowledge and skills on prudent financial management and making informed decisions in the market, including purchasing major assets such as houses.
DATUK PAUL SELVA RAJ
Secretary-general, Federation of Malaysian Consumer Associations
Refer from www.nst.com.my
PETALING JAYA: Property development company Titijaya Land Bhd’s subsidiary, Aman Kemensah Sdn Bhd has been awarded the High Qlassic Achievement Awards 2017 for its Embun @ Aman Kemensah project.
QLASSIC (Quality Assessment System in Construction) is a system and method to assess and evaluate the workmanship quality of building projects, based on the Construction Industry Standard (CIS 7).
The CIS 7 was established as a mean to objectively compare the quality of workmanship among construction projects through a scoring system.
The award ceremony was officiated by Works Minister Datuk Seri Fadillah Yusof, with Construction Industry Development Board (CIDB) Malaysia chief executive Datuk Ahmad ‘Asri Abdul Hamid present at the event.
Titijaya Land Bhd group managing director Tan Sri Lim Soon Peng said: “Quality is a translation of an idea and inspiration for Titijaya Land. We strive towards building quality properties for our buyers and winning this award is a further validation of that ideology. Going forward, Titijaya intends to stay on course with its strategic focus on delivering quality homes.”
Embun @ Aman Kemensah is a low-density gated and guarded development with 51 units courtyard villa with private lifts and private club house facilities that is surrounded by lush of greenery and comes with a hilltop cityscape view.
Refer from http://www.thestar.com.my/business/business-news/2017/08/24/titijaya-receives-high-qlassic-achievement-awards-2017/#m7AjWQ3ceT8vH1cf.99
KUALA LUMPUR: Prasarana Malaysia Bhd has defended the award of the LRT3 rolling stock to a consortium formed by CRRC Zhuzhou Locomotive Co Ltd, Siemens Ltd China and Tegap Dinamik Sdn Bhd, despite it being the sole bidder to supply the train sets valued at RM1.56bil.
Prasarana CEO Datuk Seri Azmi Abdul Aziz said all the due process was observed during the procurement process that showed promise when five companies pre-qualified for the tender in May 2016.
However, when the tender closed in November 2016, only the CRRC-Siemens-Tegap Dinamik consortium put in a bid.
The supply and commissioning of the rolling stock is one of the largest systems work packages offered by the LRT3 project that spans 37km from Bandar Utama to Johan Setia, Klang, while providing 26 LRT stations.
“The evaluation was done according to established tender processes. We have checked the specifications, the submissions, and we are sure that what has been offered is of value to the project,” said Azmi at the signing ceremony here yesterday.
Also present was Chinese ambassador Dr Huang Huikang.
“A tender is not necessarily about comparisons. A tender is about the observance of process, and we have identified those who should participate. Everything is done according to procedure,” said Azmi.
While it is widely believed that the other four potential bidders decided that they could not match CRRC when it came to pricing, a senior Prasarana official who declined to be named argued that it is not always a case of the “cheapest supplier wins”.
“For example, the signalling job did not go to the lowest bidder,” he said, while adding that calling another tender for the rolling stock could also result in the same outcome, and delay the project.
In his speech at the event, Prasarana chairman Tan Sri Ismail Adam said the government had set Aug 31, 2020 as the deadline for the completion of LRT3.
“I am wondering whether we can open three weeks earlier as we saw that the Sungai Buloh-Kajang MRT line managed to open two weeks earlier than the deadline,” he said in jest.
Read more at http://www.thestar.com.my
New Residential Launches
Refer from housingwatch.my
Malaysia is doing a lot of measures to pulling Foreign Investors whether on National economy or local property market. Is it good or bad?
The below is what Chris Tan mention on the Pull Factors for Foreign Property Purchasers (article refer from www.theedgeproperty.com.my)
Malaysia offers many pull factors for foreign property purchasers
By Lum Ka Kay | TheEdgeProperty.com
Saturday, 22 July 2017 18:01:55 PM
PETALING JAYA (July 21): Malaysia is a very attractive country for foreigners to purchase properties, according to lawyer and managing partner of Chur Associates Chris Tan.
“First, you don’t have to marry a Malaysian in order to own a property here – anyone who is eligible can have direct ownership. Not only that, non-Malaysians can own a freehold title in Malaysia.
“And legally, foreign homebuyers are protected under the Commonwealth Legal System, the Constitutional Property Ownership Right under the Malaysian Federal Constitution, and the country's very own Housing Development (Control and Licensing) Act 1966,” he shared this in his talk about the legal process involved in buying a property in Malaysia, during a Facebook Live stream on TheEdgeProperty.com Facebook today.
Tan added that Malaysia has an established banking system that enables foreign buyers to finance their property purchase.“In addition to that, there is no inheritance tax for foreign homebuyers. So there is no extra financial expenses for them to incur when they transfer the property to their next generation,” he noted.
Very good move to leverage on International Partner strength. Bad news for local partner but good news on buyer perhaps. Nationally we dont really benefit on this. Its always two side of the outcome, Pro & Cons.
Titijaya Land to leverage on CREC’s strength
Monday, 5 June 2017 11:47:44 AM
Titijaya Land Bhd plans to leverage on the strength of its partner China Railway Engineering Group Ltd (CREC), one of the world’s largest construction companies, to pursue large scale, capital-intensive construction projects.
“We look forward to leveraging on its strength as a construction contractor for big projects such as reclamation works, although we have not considered any yet,” Titijaya chief financial officer Edmund Tan Kian Whoo told The Edge Financial Daily in an interview.
“We are keeping our options open. If we can work with local companies we would do so, but it depends on their skills and knowledge.
“We cannot say what the future partnership share would be as it depends on the projects. Of course, as a partner, CREC depends on us for quick approvals if they want to embark on local projects. For now, they are involved in single land projects. If there are other projects, we will set up another company for that,” said Tan.
He also noted that the China-owned CREC is a financially strong company, and required payments to be settled only after 50% of the construction is complete, thus easing Titijaya’s cash flow.
On whether there are concerns arising from the termination of Iskandar Waterfront Holdings and CREC consortium’s RM7.41 billion share sale deal in relation to Bandar Malaysia Sdn Bhd, Tan said Bandar Malaysia is a separate matter and that the aborted deal has no impact on Titijaya’s relationship with CREC.
“CREC has construction completion skills, which means there is no risk of projects being abandoned,” he said.
Titijaya is partnering CREC to jointly develop The Shore in Kota Kinabalu, Sabah, and 3rdNvenue in Jalan Ampang here in Malaysia, which have a combined gross development value (GDV) of RM2.57 billion.
“We will be promoting these [high-end] units at The Shore and 3rdNvenue in several cities in China in the second half of 2017 (2H17). We are doing this for the first time with the help of CREC,” said Tan.
Meanwhile Titijaya expects growth of its revenue to be flat this financial year ending June 30, 2017 (FY17), before accelerating to low double-digit growth in FY18 and taking off in FY19 and FY20 through the sales of ongoing and upcoming projects.
According to Tan, the property developer, which saw revenue rise 17.4% to RM400.08 million in FY16, will likely see revenue remain at this level in FY17 amid soft market conditions.
The higher FY16 turnover notwithstanding, annual net profit eased 15.6% to RM68.34 million that year from RM80.94 million in FY15.
For the nine months ended March 31, 2017, net profit has climbed 11.8% to RM59.72 million, though revenue is down 11.8% to RM258.7 million.
Nevertheless, while some developers have deferred the launch of new projects, Titijaya said it is on track to achieve its RM300 million sales target for FY17.
The group is launching five projects in 2H17 comprising The Shore, 3rdNvenue, Damansara West in Bukit Raja, Selangor, Riveria Sentral in Brickfields here and Block B of H2O Residences in Ara Damansara, Selangor. These projects are expected to be completed in six to seven years.
Tan said Titijaya, which is repositioning itself as an affordable housing developer where its units will range between RM300,000 and RM600,000, will allocate 20% of the projects for units above RM1 million.
Titijaya has outstanding unbilled sales of RM471 million and it has in the pipeline projects with a total GDV of RM1.8 billion to be launched in FY18.
Tan said Titijaya’s total land bank for development stood at about 117.35ha in the central region, Penang and Sabah, with a total GDV of RM13 billion, which will keep the group busy until 2027.
Titijaya shares closed unchanged at RM1.60 last Friday, giving it a market capitalisation of RM645.33 million.
This article first appeared in The Edge Financial Daily, on June 5, 2017.
Titijaya to launch two high-rise residential projects in Q317
PETALING JAYA: Titijaya Land Bhd aims to launch two high-rise residential projects with a RM3.25bil gross development value (GDV) by the third quarter of this year.
Executive director Charmaine Lim Puay Fung said the properties are the 2.02 hectare Riveria City @KL Sentral (RM1.45 billion GDV) and the 2.42 hectare 3rd Avenue @ Embassy Row Kuala Lumpur.
“We are going to launch the Riveria in the next quarter. It is a high-rise lifestyle office and two blocks of service apartments.The 3rd Avenue, with a New York concept, is located at a residential hot spot,” she added.
She told reporters this on the sidelines of the H20 Residences @ Ara Damansara topping-off ceremony, here today.
“The ceremony symbolises the last stage of the development and construction to be completed by the second half of next year,” said Lim.
The H20 Residences project focuses on a flexible, modern and compact layout and 70 per cent has been taken up. The selling price is at an average of RM850 per square foot.
Looking forward, Lim said Titijaya Land would still specialise in smaller units, as demand from first time home buyers is still strong.
On plans to acquire more landbank, she said the company is always on the lookout for new purchases within Malaysia, particularly in the Klang Valley and Penang.
Titijaya Land has a current landbank of 111.28 hectares with a GDV of RM13bil.
Refer from TheStar.com.my
After the cancellation of the share sale agreement between TRX City Sdn Bhd and IWH CREC Sdn Bhd, consortium of China Rail Engineering Corporation on Bandar Malaysia, a lot people is worry that what happen next? Now it seems China Richest Man from Dalian Wanda Wang JianLin is interest in Bandar Malaysia project.
Wanda interested in Bandar Malaysia
BEIJING: Dalian Wanda Group, owned by China’s richest man Wang Jianlin, has expressed “desire” to participate in the Bandar Malaysia development.
The Wanda chairman told reporters that the investment would be “really huge”, estimating it at more than US$10bil (RM44bil).
“While we have not reached an agreement yet, I am here expressing my stance,” he said at a joint press conference with Prime Minister Datuk Seri Najib Tun Razak at the Sofitel Beijing Hotel owned by Wanda Group.
“Wanda has confidence in the investment environment of Malaysia and its future prospects, and we are willing to share our experiences with Malaysia to build a one-of-its-kind mega integrated cultural and tourism project,” he said after meeting Najib for over an hour.
Wang said going global was an important agenda for Wanda, adding that revenue from its overseas investments made up over 20% of the group’s profit last year.
Najib said the Malaysian Government envisioned Bandar Malaysia to be an iconic development instead of a run-of-the-mill property development.
“It will have great content, with cultural values and tremendous entertainment attractions,” he said, adding that he believed Wanda Group could deliver “something extraordinary, something so imaginative” for Bandar Malaysia which all Malaysians would be proud of.
“We have not gone into details and there is no agreement as yet, but this is to indicate their desire and our willingness to discuss with them,” Najib said, adding he looked forward to a favourable agreement on mutually acceptable terms.
Last week, Malaysia’s Finance Ministry called off a deal with the consortium of China Rail Engineering Corporation and Iskandar Waterfront Holdings, which was to be the master developer of the project that would also house the main terminus of the Kuala Lumpur-Singapore High Speed Rail.
At another press conference, Najib said the formula for equity stakes in the Bandar Malaysia development would be changed and the participants would not be just Dalian Wanda Group alone.
“We will take into account the position of China Rail Engineering Corporation and other groups that are interested,” he said.
To questions on when the agreement with Wanda would be finalised, Najib said details would be revealed “when the time comes”.
Later, Najib said China had assured Malaysia that it would continue to encourage financially strong and credible companies to invest in the country.
It also pledged to continue to support China-linked strategic projects in Kuala Lumpur.
Chinese Premier Li Keqiang, he said, had made this promise during their meeting at the Great Hall of the People yesterday.
“Any company that fulfills the criteria will be given support by the Chinese government so that strategic projects can be implemented,” he said after meeting Li and President Xi Jinping separately.
In his meeting with Li, Najib said he had informed the Chinese leader that he was taking a relook at the Bandar Malaysia project.
“It will go on for sure. As for its form and the parties involved, we will decide in the near future,” he said.
On whether the Chinese government would endorse Dalian Wanda Group’s investment in Bandar Malaysia, Najib said: “We will refer to the Chinese government based on the final settlement since it requires their support.”
During his four-eyed meeting with Xi, Najib said the leader had again expressed his appreciation to Malaysia for being one of the first few countries to pledge support for its Belt and Road initiative.
“On my request during my previous visit to Beijing in November last year, China has now increased the imports of palm oil from Malaysia. The volume has doubled in the first three months of the year,” Najib said, adding that tourist arrivals from China had also grown from 1.6 million in 2015 to 2.1 million last year.
“We are hoping for the figure to exceed three million this year. Based on the statistics so far in the first four months of the year, we can achieve this goal,” he said.
Najib and Li witnessed the signing of three government-to-government memorandums of understanding after their meeting.
Two companies from China also signed MoUs with their Malaysian counterparts to carry out the second phase of the East Coast Rail Link (ECRL) and gas and petroleum pipeline infrastructure project in Pengerang, Johor.
Refer from www.thestar.com.my
Great news for low income group!!! Here help to own house with zero interest rate housing loan. Perhaps this is the best opportunity for you to own a house if you are ready for the commitment.
CIMB, Maybank offer zero interest housing loans for low income staff
According to CIMB Group group CEO Tengku Datuk Seri Zafrul, the new measures demonstrate the bank’s commitment to ensure that deserving staff are adequately supported, to help them succeed in both their career and personal lives. Meanwhile, Maybank will be offering 0% interest for the first RM100,000 on staff housing loans for selected categories.
PETALING JAYA: The country’s two leading banks have come up with O% interest on housing loan schemes for their low income staff.
CIMB Group Holdings Bhd started the ball rolling on the fresh incentives launched in conjunction with Labour Day celebration last week, followed by Malayan Banking Bhd (Maybank) last Friday.
CIMB Group has set aside RM1bil for its programme to assist lower income staff in their housing loans.
A CIMB official said about 4,000 staff were expected to benefit from the scheme.
Under the scheme, employees who earn not more than RM3,500, will enjoy 0% interest in their housing loans for a maximum of five years or three years for completed properties, on loans not exceeding RM250,000.
Eligible staff are only required to start paying the loan instalment in the sixth year or fourth year for completed properties, which provides them with a roof over their heads while relieving them of the financial burden of servicing a housing loan during those periods.
Apart from that, single parents will receive financial assistance of RM200 monthly for each school-going child aged 18 years and below, subject to a maximum of five children.
In addition, staff earning not more than RM2,000 will also receive monthly assistance of RM50 for their water bill, and RM100 through Touch ‘n Go credit to partly fund their transportation cost.
According to CIMB Group group CEO Tengku Datuk Seri Zafrul, the new measures demonstrate the bank’s commitment to ensure that deserving staff are adequately supported, to help them succeed in both their career and personal lives.
“Our staff is the group’s most valuable asset, who have contributed so much to the group’s success and performance.
“This is also in line with CIMB’s new brand promise, ‘Forward’, which for our staff is about enabling them to progress and realise their dreams,” he said.
Meanwhile, Maybank will be offering 0% interest for the first RM100,000 on staff housing loans for selected categories.
The special interest rate housing loans, effective 1 July 2017, will be applicable for new and existing loans of Maybank Group employees in Malaysia who have a basic salary of up to RM3,000 per month.
Maybank Group chief human capital officer Nora Abd Manaf said in a statement that the new scheme was part of the group’s ongoing review of staff benefits to ensure they are adapted to the needs of employees as well as in line with emerging trends in market and industry.
“We believe the new housing loan rate will provide those eligible with significant relief and mitigate the concerns that they have with regards to their accessibility to affordable housing, especially in the more urban areas.”
Nora added that employees will continue to enjoy subsidised interest rates for home financing for amounts in excess of RM100,000 which currently stand at 3% for non-clerical and 3.5% for all other grades.
Over the years the group has been spearheading many pioneering human capital initiatives to ensure that it offers employee benefits that among the best in class.
"Oh no, my loan got rejected again."
"The bank reject my application."
Kind of familiar huh? Nowadays, mortgage loan approval is the main issue for property pruchasing. So how to get or increase the chances of approval for your mortgage loan?
Here's some advice from Malayan Banking Bhd (Maybank) head of consumer finance Abdul Razak Mohd Nordin.
Raise your debt service ratio to get that loan
By Lum Ka Kay from Theedgeproperty
Thursday, 20 April 2017 19:34:41 PM
KELANA JAYA: The most crucial factor in securing a housing loan with the desired financing margin is to have a high debt service ratio, according to Malayan Banking Bhd (Maybank) head of consumer finance Abdul Razak Mohd Nordin.
Speaking as a panellist at the Real Estate and Housing Developers’ Association Malaysia (Rehda) Property Forum 2017 titled “Status quo or road to recovery?” held on April 19, Abdul Razak said one thing is to have a good credit record and the other is to have a strong debt service ratio.
“For single [loan] applicants, you can consider having a joint application with your significant other or family members to increase your debt service ratio.
“Applicants can also choose affordable homes such as those priced RM500,000 and below. For us [bankers], when we realise you are unable to service the loan based on your debt service ratio, we will reject you.
“And if you are living in an urban area with a monthly household income of less than RM5,000, you’re under the vulnerable segment,” he said.
He added that for the vulnerable segment, the debt service ratio that banks consider ranges around 40% to 50%.
“For the higher income earners, we go as high as 70%.”
The general trend among Malaysians when they start working is to get a new phone and then a car, he said.
“All these will eventually affect your ability to repay the housing loan. We also have to look at your Central Credit Reference Information System (CCRIS) report.
“It all boils down to responsible lending. Banks would love to take the risk but we are regulated by Bank Negara Malaysia,” added Abdul Razak.
The other panellists at the forum were Malaysian Industrial Development Finance Bhd (MIDF) chief economist Dr Kamaruddin Mohd Nor, Jones Lang Wootton executive director Malathi Thevendran and property investor Ahyat Ishak. The forum was moderated by Rehda deputy president Datuk Soam Heng Choon. The forum was held following the launch of Rehda’s Property Industry Survey 1H2016 and Market Outlook 1H2017.
The panel members had mixed views on when the property market would recover from the current slowdown.
According to MIDF’s Kamaruddin, from a macro and global perspective, “things have hit rock bottom in 2H2016” hence he expects a recovery of the general economy from here onwards.
“As far as the domestic market is concerned, we expect 4.9% or 5% growth in terms of gross domestic product (GDP). Looking at the property sector, it will recover but perhaps not in 2017,” he said, adding that the property market may rebound in 2018.
Ahyat, however, said the Malaysian market “has yet to see the worst”.
“For me, the market cycle is experiencing a long flat,” he said.
For Jones Lang Wootton’s Malathi, there will be “nothing much” to show for 2017.
“There will still be launches going on as there will be upgraders and a limited number of investors. And if you really market it properly, the foreign market will also see opportunities.
“With our climate and other factors, we are a haven for Malaysia My Second Home (MM2H) but we are not marketing our country well enough,” she said.
Maybank’s Abdul Razak said the property market will mostly bottom out by the end of this year.
Article refer from TheEdgeProperty
Refer from TheEdgeProperty
By Tan Ai Leng
Thursday, 20 April 2017 19:53:36 PM
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) aims to launch Tria, the second phase of its 9 Seputeh project, in May.
The five-acre Tria project will feature three towers with 734 condominium units with built-up sizes ranging between 1,500 sq ft and 2,000 sq ft, said MRCB COO Kwan Joon Hoe.
“We haven’t finalised the selling price yet, but it is expected to be about 5% to 10% higher than phase 1 — Vivo,” he told TheEdgeproperty.com.
Vivo and Tria form part of the 17.3-acre 9 Seputeh mixed development located at Jalan Klang Lama, Kuala Lumpur. The entire development, which comprises high-rise residences and retail units, has a gross development value (GDV) of RM2.1 billion.
The 7.7-acre Vivo had offered 1,111 condo units with built-up sizes ranging from 775 sq ft to 2,500 sq ft. Launched in 2014, it has achieved a take-up of 80% at an average price of RM800 psf.
Kwan noted that Tria will offer bigger units to cater to upgraders from landed homes to high-rises.
Over at its Semarak City integrated development on Jalan Sultan Yahya Petra, Kwan said the company is now deciding on the launch date for the 27.41-acre freehold development in Kuala Lumpur city centre.
“During a slow market, we have to be careful on the launch timing as we do not want to hold too much stock. Tentatively, we hope to launch Semarak City at the end of the year,” he added.
According to MRCB’s annual report,
Semarak City comprises 3,400 serviced apartments, shops and SoHo (Small-office Home-office) units as well as a shopping mall.
Kwan said the residential component of Semarak City will be targeted at the middle income group with indicative prices from RM500,000 to RM600,000. Phase 1 will offer 1,200 apartment units.
He added that MRCB is performing well despite the soft market and the property development segment was able to sustain healthy growth and contribute to the group’s revenue and profit.
In 4Q2016, MRCB recorded a revenue of RM1.032 billion, a 166% increase from the same quarter in the last financial year, while profit before tax in 4Q2016 was RM238.6 million, mainly driven by its property development segment.
Kwan expects the growth momentum to continue as the company will be rolling out various projects catering to different income groups, including Tria, Sentral Suites, a new development at Kwasa Sentral as well as Semarak City.
“We have a landbank of 468 acres in prime areas in Malaysia with a GDV of RM50 billion. This could keep us busy for the next 20 years, and we are always looking out for prime land to increase our landbank,” he added.
Johor people is going to benefit from this. Great to hear that Lee Chong Wei International Sports City is going to realized in JB.
UMLand inks MoU with Chong Wei Binajaya to develop Lee Chong Wei International Sports City
(From left) UMLand Seri Alam head of subsidiary Freddie Lee, UMLand director Datuk Syed Ahmad Khalid Syed Mohammed, Chong Wei Binajaya chairman and founder Datuk Wira Lee Chong Wei, UMLand group managing director Dennis Ng Yew Khim, chairman Tun Musa Hitam, Chong Wei Binajaya executive director Datuk Lee Chong Hoon and project director Datuk Wayne Chew at the MoU signing ceremony. (Image by UMLand)
PETALING JAYA (March 6): United Malayan Land Bhd (UMLand), via its wholly-owned subsidiary Seri Alam Properties Sdn Bhd, has inked a memorandum of understanding (MoU) with Chong Wei Binajaya Sdn Bhd to develop part of the proposed Lee Chong Wei International Sports City.
According to a statement by UMLand, under the MoU Seri Alam Properties will contribute a parcel of 16.38 acres of converted commercial land to Chong Wei Binajaya where the latter will develop the commercial portion to form part of the proposed Lee Chong Wei International Sports City.
Located in Bandar Seri Alam, Johor Bahru, Lee Chong Wei International Sports City is the brainchild of Malaysia’s badminton star Datuk Wira Lee Chong Wei. It is envisioned to be a one-stop ecosystem that blends sports and lifestyle elements.
According to UMLand, the integrated sports city will host world-class badminton tournaments, provide wellness therapy, advanced fitness training — all in a purpose-built complex — along with accommodation, leisure, entertainment, recreation, retail shops and offices.
“The development will see the establishment of an international class sports arena in Johor, allowing the state to host more international tournaments such as the Malaysia National Circuits and Grand Prix Gold.
“It will also be a professionally managed training hub for international and local badminton players — with a sports academy as a new education initiative, offering degree certification for courses.
“Other facilities will include the development of a multipurpose hall, serviced apartments, a hotel, hostel, office tower, commercial spaces and shops for retail, food and beverage, entertainment and recreation, and ample car parking,” said the developer.
Bandar Seri Alam is a 3,800-acre mixed township development with prime commercial, residential, institutional and industrial buildings by UMLand, located in the prime growth corridor of the Eastern Gate Development of Iskandar Malaysia.
The township is recognised as a City of Knowledge with the establishment of educational institutions including University Kuala Lumpur, University Technology Mara, Masterskill University College of Health Sciences, Malaysia Art School, Excelsior International School, Nam Heng Chinese Primary School and the upcoming Foon Yew High School.
Refer from theedgeproperty.com.my
Shawn Ng | TheEdgeProperty.com
Sunday, 2 April 2017
AS land costs in urban centres like Kuala Lumpur, Penang and Johor Bahru have risen significantly due to land scarcity, property developers have little choice but to go vertical and construct high-rise projects, be they residential, commercial or integrated developments.
“Within the context of the current soft market conditions where affordability is a key consideration for both house buyers and investors, developers have been focusing more on smaller-sized units where the unit price is less prohibitive,” Henry Butcher (M) Sdn Bhd COO Tang Chee Meng tells TheEdgeProperty.com.
A little bit further away from urban centres, new township developments still offer mainly landed homes, but within the city there has been a growing trend of small-sized units within high-rises, he says.
“Studio units, 1-bedroom and 2-bedroom units — we are seeing more of these within the development mix of high-rise residential projects located within urban centres.
“These high-rise homes cater to first-time homebuyers such as young singles and new couples as well as small families and elderly people whose children have all left the nest,” Tang adds.
According to data from the National Property Information Centre (Napic), the total existing supply of non-landed/high-rise residential units in the country, including low-cost flats, flats, apartments and condominiums, stood at 1,422,560 units as at the third quarter of 2016 (3Q2016), which translates to about 28.99% of the total existing residential stock of 4,906,722 units in the country.
If the existing supply was to include commercial-titled Small-office Home-office (SoHo) units and serviced apartments which totalled 89,359 units, the figure would rise to 1,511,919 units.
Looking ahead, the future supply of all non-landed residential properties (not including SoHos and serviced apartments) stands at 523,645 units as at 3Q2016 consisting of incoming supply of 306,554 units and planned supply of 217,091 units.
Meanwhile, the future supply of SoHos and serviced apartments are 269,507 units in total as at 3Q2016, and comprises incoming supply of 164,113 units and planned supply of 105,394 units.
Nawawi Tie Leung Property Consultants Sdn Bhd managing director Eddy Wong points out that the future supply of high-rise properties shows a significant number especially considering the prevailing weak market sentiment amid tight credit conditions.
“There will be a significant pressure on prices to adjust, though the actual impact on the various sub-markets would vary depending on locality, demographics and income levels,” he says.
Interestingly, based on the Malaysian House Price Index, the high-rise residential sub-sector has registered the second highest price growth among all residential property types from 2000 to 3Q2016, coming in next after detached houses.
According to data from TheEdgeProperty.com, over the years, the average transacted price of non-landed residential properties in KL had risen by RM176 or 49.72% to RM530 psf in 3Q2016, from RM354 in 1Q2012.
Similarly in Selangor, the average transacted price had shot to RM313 psf as at 3Q2016, RM113 or 56.5% higher than RM200 psf in 1Q2012. However, since 4Q2014, the average transacted price has seen no significant growth in Selangor.
Meanwhile, as at 3Q2016, the transaction volumes of non-landed residential properties in KL and Selangor had declined 68.33% and 70.07% respectively year-on-year, to 623 and 1,196 transactions, respectively.
Looking for good buys
Wong notes that the current slowdown in the property market is a good opportunity to look for good buys, as developers are more amenable to offering good incentives to move their inventory.
He advises investors to consider the key factors such as location, connectivity and accessibility to amenities when selecting what to buy.
“High-rise developments which are centrally located, with good connectivity and with easy access to amenities such as shopping, dining and entertainment, are very well sought-after. Meanwhile, the properties around the RM500,000 price point is currently very popular given the tight credit condition which places a constraint in the purchasing power among homebuyers,” he says.
Meanwhile, Tang says investors should look for areas that offer good growth potential. In the Klang Valley, such areas include Cheras, Kepong, Setapak, Wangsa Maju, Ampang, Bukit Jalil, Puchong, Old Klang Road and Bandar Malaysia, he offers.
These areas, he adds, are able to cater to the middle income group and will see vast improvements in infrastructure and accessibility especially areas along the mass rapid transit (MRT) lines as well as the recent light rail transit (LRT) extensions.
Based on his observations of new launches over the past year, Tang says smaller-sized units with built-ups of less than 1,000 sq ft and priced in the RM300,000 to RM600,000 price segment appear to have recorded the best sales in the Klang Valley.
In the mid to longer term, the market for non-landed residential property in KL and Selangor looks positive, says Wong. He believes the market will be supported by its young demographic and the growth in household incomes.
Tang concurs. Although demand may be temporarily disrupted due to the slowdown in the economy, tighter credit availability and poorer consumer sentiments, the future will see high-rise residences becoming a more popular choice among developers and homebuyers.
“As land cost is not likely to go down, we foresee that high-rise residential properties will remain the affordable option for residents in the main urban centres,” Tang says, adding that this high-rise residential property development trend will also likely continue.
Tolerance and understanding ensure harmony
High-rise living is becoming a norm as increasingly more people are moving into high-rise homes nowadays.
However, when large groups of people live close together and share the same facilities, there may be some discomfort and strain due to the differences in age groups, cultures and behavioural preferences.
Hence, Nawawi Tie Leung Property Consultants Sdn Bhd managing director Eddy Wong says the residents should have tolerance and understanding plus civic-mindedness to ensure a happy and pleasant living experience for everyone in the community. This is especially crucial when dealing with disputes that may arise.
According to Henry Butcher (M) Sdn Bhd COO Tang Chee Meng, one way to overcome the challenges of living in high-rises is to outsource and employ a good and effective manager who is firm, fair and able to secure everyone’s cooperation while implementing rules and policies according to what has been set by the Joint Management Body or Management Corporation.
The common problems faced when staying in high-rises involve getting all residents to pay their maintenance fees on time; and residents who lack civic-consciousness and a sense of pride and ownership of the common facilities like the lifts and recreational equipment.
There could also be difficulties getting the full cooperation of residents in following house rules like keeping pets, parking of vehicles in the designated bays and adhering to security arrangements, Tang says.
Hence, he urges every owner to play their part in observing house rules and paying their maintenance fees and sinking fund in full and on time, otherwise the management and maintenance of the property will deteriorate due to lack of funds and in the long term this could have an adverse impact on the property’s value.
In addition, adequate and clear communication between the management team and the residents is also very important, he adds.
This story first appeared in TheEdgeProperty.com pullout on March 31, 2017.
PETALING JAYA (March 25): Titijaya Land Bhd is looking to launch mixed development 3rdNvenue in Jalan Ampang in the third quarter of 2017. It is set to be completed in 2022.
Located on a 6.06-acre of freehold land in Embassy Row, 3rdNvenue has a gross development value of RM2.1 billion and offers 2,500 units of serviced apartments, Small-office Home-office (SoHos) and retail lots in four towers of between 42 and 48 storeys.
The serviced apartment units will have built-ups of 430 sq ft to 1,110 sq ft. Facilities for the project include swimming pool, wading pool, gym, Jacuzzi, sauna, business lounge, BBQ lounge, sky dining, nursery, entertainment room and multi-purpose hall. Prices start from RM800 psf.
“The target market for 3rdNvenue is the younger generation, mostly professionals and entrepreneurs, aged from the late 20s to 40s. The demand for affordable properties has gone up tremendously following the rapid increase in prices.
“With its attractive pricing, modern industrial design and vibrant colour scheme, 3rdNvenue can capture the attention of the target group as it aptly fits the needs of young people and their lifestyles,” said Titijaya Land executive director Charmaine Lim.
She told City & Country that the developer is hoping to capitalise on the 3rdNvenue’s strategic location and affordable pricing. To date, the group has opened 800 units for previews and all have been booked.
“Based on our previews, we find that prospective purchasers are mostly young professionals. Some customers even queued up as early as 4am to make a booking. This is encouraging as it shows there is demand for this type of development. The facilities are designed to appear trendy and attractive to owner-occupiers as well,” said Lim.
The development also offers multi-tier security systems and is situated about 1km from Gleneagles Medical Centre and Great Eastern Mall. Other nearby amenities include the Jelatek and Datuk Keramat light rail transit stations, Sayfol International School, Raffles Laselle International Design School, The Royal Selangor Polo Club, Ampang Point, Ampang Park Mall and Suria KLCC.
Refer from theedgeproperty.com.my
Pre Launch Kampung Jawa Klang
Red Bricks Double Storey Link House 20x75
Build up as big as 1,995 sqft
New development with guarded community:
Very Low Density with Total 50 units Landed House ONLY
Location: Nearby Alam Impian & Kampung Jawa Klang
Size: 20ft x75ft
Build Up: 1,995 sqft
Completed : Mid 2019
Price Range: RM650k - RM710k
Special Packages for Early Bird Buyer:
Booking Fee just RM5000 only
Free SPA legal
500m to Giant
500m to Mcd
500m to Petrol Station : BHP, Petron, Shell
300m to SMJK Chung Hwa
1km exits to West Coast Expressway (completed on 2019 early)
5min exits to Alam Impian Toll
8 minute exits to Kesas Highway
Call now for appointment :
MRT Malaysia first phase opens on Friday
The first phase of the Sg Buloh-Kajang Line (Malaysia MRT Line ) – to be launched next Friday – is not expected to be heavily used for the moment.
Once the entire line is fully operational, however, it will serve some 400,000 passengers.
The launch will see 12 MRT stations open for commuters – Sg Buloh, Kampung Selamat, Kwasa Damansara, Kwasa Sentral, Kota Damansara, Surian, Mutiara Damansara, Bandar Utama, Taman Tun Dr Ismail, Phileo Damansara, Pusat Bandar Damansara and Semantan.
Mass Rapid Transit Corporation Sdn Bhd strategic communications and stakeholder relations director Datuk Najmuddin Abdullah said it did not expect Phase 1 to be heavily utilised.
This was partly due to KTM Komuter at Sg Buloh being the only connection to the line under Phase 1, he said.“The line does not connect to other rail-based services and it does not come into the city centre,” he said yesterday.
The 23km-long alignment is expected to be launched by Prime Minister Datuk Seri Najib Tun Razak who took a preview ride on the train with several bloggers and social activists on Friday.
Najmuddin said with the completion of Phase Two – which stretches for another 19 stations to Kajang – operations would begin to serve the estimated 1.2 million people living along that that corridor.
“This means they will have easy access to the line. We expect around 400,000 passengers to use it (daily) when it is fully operational,” he said.
When fully operational, Najmuddin said it would help to remove some cars from roads, especially for those in areas such as Sg Buloh, Kota Damansara, Bandar Utama, Cheras and Kajang and those working in the city centre.
“The capacity of the line is 20,000 passengers per hour per direction. Each MRT train, which has four coaches, can carry 1,200 people.
“During peak hours, the frequency of trains is one every 3.5 minutes,” said Najmuddin.
At present, driving from Sg Buloh to Phileo Damansara here during the morning rush hour can take up to 90 minutes.
Commuters using the MRT will be able to travel from as low as RM1 for a single stop based on the cashless fare structure.
Rapid Rail Sdn Bhd said the maximum fare will be RM6.40 based on the cash fare structure and RM5.50 based on the cashless fare structure.
Some 120 feeder buses will also be deployed on 26 routes to service the 12 stations between Sungai Buloh and Semantan that make up the first phase of the MRT line.
Article refer from http://www.thestar.com.my/news/nation/2016/12/11/mrt-first-phase-opens-on-friday-12-stations-from-sungai-buloh-to-semantan-to-begin-operations/
Follow with China signed a RM155bil foreign investment MOU to invest into major areas such as Infrstructure, transportation and real estate. Then Jack Ma is being appointed as Malaysia's Digital Economy Advisor for Malaysia. Now we have CREC having another project with Titijaya Land Bhd. CREC is one of the world’s largest construction companies, with a history of more than 100 years and ranked 57th among Fortune World Top 500 Enterprises and 7th among Top 500 Chinese Enterprises in 2016.
Titijaya partners CREC for RM2.1bil project
KUALA LUMPUR: Property development company Titijaya Land Bhd’s wholly-owned subsidiary Titijaya Resources Sdn Bhd has today signed a shareholders agreement with CREC Development (M) Sdn Bhd for the construction and development of a leasehold land at Embassy Row, Jalan Ampang.
The proposed development to be built on the land measuring 6.06 acres, is expected to have a gross development value of RM2.1bil.
Concurrently, both companies have also acquired Ampang Avenue Development Sdn Bhd for a total purchase consideration of RM80mil.
Ampang Avenue, whose subsidiary is the registered proprietor of the land, now functions as the joint venture (JV) company.
The plot of land has a current market value of RM403mil and has an approval from Dewan Bandaraya Kuala Lumpur for a mixed use development with a plot ratio of 1:8:0.
In the JV company, Titijaya will be responsible for matters related to sales, marketing, credit management and administration, while CREC will take lead for matters related to monitoring, management and supervision of the day-to-day construction operations.
Both companies will appoint a nominee company of CREC as the main contractor of the JV company for the proposed development project.
Titijaya group managing director Tan Sri Lim Soon Peng said that the signing marks an important milestone for Titijaya, in its efforts to broaden its revenue stream.
“The rationale of the proposed acquisition of Ampang Avenue is for Titijaya Resources together with CREC as shareholders of the JV company to form a strategic collaboration in relation to the proposed development of the land.
“We believe that this corporate exercise will enable us to seek new strategic growth and ensure earnings sustainability for Titijaya, moving forward,” said Lim.
He added that the proposed JV with CREC will enable both parties to leverage on the synergistic outcomes, for mutual benefits.
CREC Development is a wholly-owned subsidiary of China Railway Engineering Corporation (M) Sdn Bhd, which is in turn a wholly-owned subsidiary of China Railway Group Ltd.
CREC is one of the world’s largest construction companies, with a history of more than 100 years and ranked 57th among Fortune World Top 500 Enterprises and 7th among Top 500 Chinese Enterprises in 2016.
Refer from www.starproperty.my
Here's Something Interesting to Have a Thought About It
Have you ever thought about what will it be for Property Development in 100 years’ time? What will it looks like? What kind of technologies will we have? Or maybe even how's the earth condition at that period?
Here's an interesting article about it and also outlook from some renowned developer:
The article is provided by Nippon Paint Malaysia publish in TheEdgeProperty.com
Property development in 100 years’ time
By Nippon Paint Malaysia | October 27, 2016 7:43 PM MYT
IN the 19th century, French artist Jean-Marc Côté and other artists produced a series of futuristic artworks called “En L’An 2000” or “In The Year 2000” that depicted scientific advances imagined as achieved by the year 2000. Among them, at a time when mobile homes were unheard of, was a painting of a house on wheels rolling through the countryside, which has become a reality today.
From merely building a roof over our heads, property developers today have come up with lifestyle developments such as high-rise homes that offer a myriad of facilities from rooftop gardens to infinity pools to even jogging tracks and man-made beaches in the sky!
With frontier technology, property marketing has also evolved as developers today have embraced social media marketing to engage with their customers and adopted the latest virtual reality technology to provide 3D virtual reality property tours. In the construction sector, we are seeing more pre-fabricated homes and “smarter” building materials, including smart concrete that heals its own cracks, double glazed glass, and special effect paint coatings like the Nippon Paint Momento Special Effect Paint that takes traditional paint to a whole new level! These are things that people in the past couldn’t have imagined.
So what more does the future hold? What would future advances bring about in property development? Here are four leading developers in Malaysia telling us what they see in their crystal balls.
SkyWorld: People-centric developments
SkyWorld Development Group COO Lee Chee Seng foresees that developments would be more people-centric and focused on quality community living.
“Technology will play a big part in home living; in enhancing communications, security, conveniences like shopping and others,” he muses.
In the construction process, IBS (Industrialised Building System) may regulate how buildings are constructed in the future while green building standards will be the norm. “Adopting the Green Building Index (GBI) is now an optional practice, it will possibly be compulsory in future,” he opines.
He expects three current trends to remain in the future — gated-and-guarded developments, healthy and functional living environments, and the adoption of GBI features such as low-emission glass, inverter lifts, energy-saving lights, etc.
“Gen Z prefers smaller, more urbanised and easier-to-maintain homes with better security features, as we now see in Thailand, Australia and Singapore, and it would be a matter of time before Malaysia catches up,” Lee predicts.
“Parking bays may be reduced in tandem with the drop in car ownership with better public transportation in the city such as MRT (mass rapid transit) and LRT (light rail transit) and technologies such as Uber and GrabCar changing the way people travel.
“With the growing awareness of healthy living, we will also see the increase of sports facilities or parks,” he continues.
IJM Land: Smart cities
With technology advancing at such a rapid pace, the world will be an entirely different place from today, says IJM Land Bhd managing director Edward Chong Sin Kiat.
In the future, Chong expects building construction to be much more efficient and quicker with less use of natural resources such as land, space and materials.
“Transportation is a major consideration in today’s market but will be a thing of the past while flying vehicles or maybe, just maybe, teleportation will be the new norm,” he visualises.
With driverless cars in testing and car sharing already in the works, car ownership and consequently car parking requirements will be reduced significantly, thus creating a new trend in property development, he adds.
“There will be seamless connectivity wherever you go as cities turn into smart cities where every movement and action can be monitored,” Chong says.
Kitchens may have to make way for other uses as food and drinks may be in capsule or tablet form. Shopping may also be different where online stores will enable customers to touch and feel the products. Virtual reality may also enable you, your family and friends to experience shopping together without leaving your homes or offices.
Nevertheless, Chong believes the human touch and emotional experiences are elements that cannot be replaced despite the rapid growth of technology.
“Without all these fundamentals, humans will be no different from machines. As such, I believe that all trends related to emotional aspects will remain.”
Mah Sing: Technologically equipped
A century from today, the property landscape will be very much technologically driven, says Tan Sri Leong Hoy Kum, the group managing director of Mah Sing Group Bhd.
“With new technological innovations emerging almost on a daily basis, homes in the future will be equipped to make lives more convenient. For example, homebuyers nowadays are already looking at keyless options and Mah Sing has incorporated keyless digital locksets at its Cerrado Residential Suites in Southville City @ KL South,” he adds.
Leong points out that construction will continue to focus on environmentally friendly systems as developers aim to minimise wastage of raw materials while delivering sustainable homes. With greater awareness of environment protection, Leong expects green developments to be more popular in future.
He shares that small units in strategic locations that are affordably priced will be in demand as long as they are in key locations near offices, public transportation and facilities. Space utilisation will be an important trend. “Smaller units have to be designed in a way that fully utilises the room’s space,” he says.
“If we were to develop a dream project, it would be an integrated development with small units and surrounded by superb infrastructure,” he says, citing that public transportation will provide added convenience to homeowners and lower carbon footprint.
“Hopefully, we can achieve this project in the near future. We also hope that the Malaysian property sector will continue to incorporate innovations to make lives easier.”
Tropicana: Diverse universal locations
Tropicana Corp Bhd group CEO Datuk Yau Kok Seng foresees property development to be more innovative and efficient a century from now with technological advancement and as new lifestyle needs emerge.
With prime land becoming scarce, alternatives like floating cities in the sky, or under the sea and even underground, may be necessary, he says, adding that colonies could possibly even be set up on the moon or Mars.
“Properties will be built at any conceivable location. However, they may not be owned but rented because occupants may choose to live at diverse locations, so owning properties will not be economical,” he foresees.
Yau predicts the emergence of properties which are intelligent, interactive and complement the lives and habits of occupants, like smart homes. “They are like a learning ecosystem of the occupants’ habits and movements, adapting and changing according to their needs,” he explains.
He expects construction methods to change with the introduction of advance intelligent systems which are adaptive and more automated such as 3D printing.
“Buildings could be ordered off the shelves, tailor-made to individual requirements and built in the most efficient manner with less or no human labour,” he imagines.
Yau suggests that future developers will play the role of platform providers, integrating technology and lifestyle needs.
”With property development becoming more innovative and efficient, fuelled by the latest technology, it may result in domination by global players who are able to embrace the changes and excel in such conditions,” he muses.
Looking ahead, Yau hopes there will be a well-planned and balanced growth within the urban areas in Malaysia.
This story first appeared in TheEdgeProperty.com pullout on Oct 28, 2016, which comes with The Edge Financial Daily every Friday
Budget 2017, what does it menas to property?
A disappointment for most investor and developers as nothing is moving this direction thought market is soft and bank loan is strict.
Under the new budget, there will be a 100% exemption of stamp duty given, but only for properties priced no more than RM300,000 which not many people is affected. In fact, its reducing the people who are beneficial from this group. Presently, a 50% exemption is given for the purchase of homes that are priced no more than RM400,000. From summarize, government need more people to submit stamp duty.
What I think, if government wont able to help, Developer will do something to help themselves. Don't you think so? Do you think they want their real estate business just going downwards?
I do think you will get some surprise projects either its very low price or psf. Unless they dont want to focus their business in Malaysia or focus on their non real estate business. The developer may be slowing down in terms of new launches but they still need new sales to move forwards. That's the business nature. But from lately movement, you can see there is more projects launching after cooling down for the first half of the year. Lets see the review from The Edge Properties.
Budget 2017 a let-down for property players
KUALA LUMPUR (Oct 24): Property developers who were anticipating measures to spur the sluggish property market from Budget 2017 last Friday came away disappointed, as there were no clear incentives for them.
In fact, the property market may be worse off going forward, as the stamp duty for purchases of properties priced above RM1 million will be raised to 4% from 3% from Jan 1, 2018, which would discourage the purchase of high-end properties, an analyst tied to a local research house told The Edge Financial Daily.
There were measures announced to address the issue of affordable housing targeted for the bottom 40% of Malaysian households whose income is at RM3,900 and below, which were expected.
But these measures are mostly specific to PR1MA or Perumahan Rakyat 1Malaysia projects — for homes priced at RM300,000 or below — with no indication that it will be extended to private property players.
Other notable measures introduced included the provision of strategic vacant government lands to government-linked companies and PR1MA for the development of more affordable homes priced between RM150,000 and RM300,000, and the development of 10,000 houses to be rented to eligible youths at a below-market rate, for up to five years. Again, not for private players.
Not surprising then, that immediately after the budget was tabled last week, the Real Estate and Housing Developers’ Association Malaysia (Rehda) called on the government to extend the affordable housing incentives to private developers too.
“In areas where PR1MA is not present, we hope that this incentive can be given [to private developments] as long as the [price] threshold of these houses is the same,” Rehda president Datuk Seri FD Iskandar told reporters last Friday.
Under the new budget, there will also be a 100% exemption of stamp duty given, but only for properties priced no more than RM300,000. Presently, a 50% exemption is given for the purchase of homes that are priced no more than RM400,000.
While the above measures address some social housing needs, the analyst said they will provide no boost to listed property developers, as many do not have properties in the RM300,000 and below range.
“The listed big-cap property developers — those with a market capitalisation of more than RM3 billion — were expecting more from the budget. They anticipated an easing in lending policy and a higher allocation for the purchase of homes under Account 2 of the Employees Provident Fund for first-time buyers,” said the analyst.
These were clearly not in the budget. There was also no change to the real property gains tax rate, while the developers’ interest-bearing scheme was still not allowed to make a comeback.
“Overall, the budget was not very helpful to listed players. Stock prices of property developers climbed prior to the budget — most thought it would be a boost for the segment. So there may be some weakness in the counters going forward.
“We expect the local property market to remain subdued going forward,” he added.
S P Setia Bhd president and chief executive officer Datuk Khor Chap Jen also noted the lack of incentives to stimulate the subdued property market.
“We are happy that the government will make financing easier and more accessible, and is looking at reducing the loan rejection rate for first-time home buyers.
“Nevertheless, we noted that the government did not introduce broader incentives to spur the soft property market and has a proposal to increase stamp duty for properties above RM1 million,” said Khor.
Similarly, property consultancy ExaStrata Solutions Sdn Bhd’s chief real estate consultant Adzman Shah Mohd Ariffin said the budget was below expectations.
“Generally, the budget gives a lot more emphasis on affordable housing with more units being developed and a better end-financing scheme. However, the lack of goodies for the real estate market will not augur well,” he said.
On the higher stamp duty rate for homes above RM1 million, Adzman said this will dampen the high-end market, though he noted that there is still a window for transactions in 2017.
“Maybe this was done to encourage transactions in 2017,” he mused.
Mah Sing Group Bhd is one of the few which have decided to view the stamp duty rise in a more optimistic light.
“For those who have the intention of buying higher-end homes, the stamp duty increase from 3% to 4% for homes priced more than RM1 million will encourage advance buying of completed properties prior to Jan 1, 2018.
“Some of our remaining units in M City in Jalan Ampang, Aspen @ Garden Residence and Icon Residence, Mont Kiara, will benefit from this, as buyers will be driven to make a faster purchase in order to not be charged the higher stamp duty rate,” said its group managing director and group chief executive Tan Sri Leong Hoy Kum in a statement.
This article first appeared in The Edge Financial Daily, on Oct 24, 2016
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I always say you have to be creative and in the decoration have to play with colors, shapes and textures to make your home look amazing, very original and especially for you to feel comfortable in it.
Basic to a house are the walls and sometimes do not pay enough attention so a couple of weeks I wanted to make a change and decorate my walls in a creative way, without using tables. The first idea was that I did, but I’ll leave others to see if you dare to make:
Among good living room paint ideas, a great idea to make a difference in your walls, is empapelarla with fun tapestries. For example I placed a striped wallpaper in my living room and was really cool. Besides this wallpaper design makes room ceilings appear higher and so the room looks larger
2. Magnetic Wall:
I love this idea and I have not done yet but sure will do it soon and I’ll tell you how I was. This is painting the wall that you want (I suggest it’s in your kitchen) with at least three coats of paint magnet or magnetic, the need to let it dry for a couple of days and go! It will look like the wall of your fridge. And you know what’s best? You can change the pictures, photos, and other decorative objects, in seconds. Is not it amazing?
A fun way to have your hand whenever your earrings, the work of your children or photographs, is hanging on the walls around clipboards. I recommend you put them on the wall of the room of your children or in a studio.(Read the full tip here )
If you are a collector of dishes then this idea you’ll love. It comes to decorating an entire wall with hanging plates, no matter they are of different sizes and designs … that’s just the fun. You’re going to see what father is!
5. Photographs: It is a fact, the photos brighten a house and see them, do you return to live important moments of your life, so a good idea is to hang on your walls cords or decorative strips as if they were a “clothesline” and use tongs to hang several pictures over it. (See the full tip here ) or as collages.
Article Refer from http://www.jijbentflandersfuture.be/
Kajang still sizzles
KAJANG, famous for its delicious satay, has more to offer than the tasty meat skewers.
Located at the south of Kuala Lumpur, Kajang’s property market is gaining growth momentum. This is supported by its population growth. According to the Department of Statistics, Kajang’s population was close to 800,000 in 2010, or 15% of Selangor’s population of 5.4 million.
Kajang has been a popular choice for homebuyers looking for spacious property in the mid to affordable price range especially landed homes.
Compared with urban areas such as Kuala Lumpur and Petaling Jaya, residential properties in Kajang are definitely more affordable but prices have seen significant growth over the years.
According to TheEdgeProperty.com’s data, the average selling price of terraced houses in Kajang had climbed to RM303.75 psf in 2015 from RM260.50 psf in 2012, an increase of nearly 17%.
Property consultancy firm MacReal International Sdn Bhd founder Michael Kong says Kajang town has been growing exponentially on its own due to many positive factors. One is of course the upcoming Kajang-Sungai Buloh Mass Rapid Transit (MRT) Line.
“The MRT Line will give a further boost to the property values here as we expect demand to rise when it starts operating,” he tells TheEdgeProperty.com.
The 51km MRT Line which links Sungai Buloh in the northwest with Kajang in the southeast, is slated to be completed by 2017.
It will have 31 stations, including 16 with park-and-ride facilities and four interchange stations. Notably, there will be a park-and-ride facility located at the Kajang MRT station which connects to the Kajang KTM Komuter Station, which is an interchange station to the Seremban KTM Line.
Kajang is easily accessible via several major highways, including the Kajang Dispersal Link Expressway (SILK), the Cheras-Kajang highway, the North-South Expressway, the new South Klang Valley Expressway (SKVE) and the Kajang-Seremban Highway (LEKAS).
“Kajang is also in a unique and much enviable location. It is a short distance to major strategic and important places. For instance, it is situated less than a 15-minute drive from Putrajaya and Cyberjaya, and a 30 to 40-minute drive from the Kuala Lumpur city centre and the Kuala Lumpur International Airport,” offers Kong.
He notes that Kajang town is also supported by many local industries which have their operations in industrial estates such as in the Bukit Angkat Industrial Area, the Bandar Teknologi Kajang industrial precincts and other major industrial estates in the surrounding areas of Bangi and Semenyih.
Apart from this, the town is also close to numerous educational institutions such as New Era University College, Infrastructure University Kuala Lumpur, Universiti Kebangsaan Malaysia in Bangi, Universiti Putra Malaysia in Serdang, Nottingham University Malaysia campus in Semenyih, Universiti Tenaga Malaysia in Bangi and the German-Malaysian Institute in Kajang.
iProp Realty Sdn Bhd managing director Victor Lim says the robust development in neighbouring Semenyih lately is bringing even more value and sustainable growth to Kajang as the attention of homebuyers is drawn by the myriad of new development offerings in these areas south of Greater KL.
Big developers such as S P Setia Bhd, I&P Group Sdn Bhd, Eco World Development Group Bhd, SYF Development and Country Garden Properties (M) Sdn Bhd have spotted opportunities here and have been expanding their footprint to the southern corridor of the Klang Valley.
S P Setia’s Setia EcoHill township development in Semenyih, which is about a 20-minute drive from Kajang town, had received overwhelming response from property buyers when it was first launched in 2013.
The development, which has a gross development value (GDV) of RM4 billion, has seen the first three phases fully sold and the last phase, launched in 3Q2015, 70% taken up.
Following the success of Setia EcoHill, the developer had unveiled the Setia EcoHill 2 development in June. The 1,010-acre freehold development is located just 3km away from Setia EcoHill.
Lim notes that even though the housing prices in Kajang have increased a lot over the past five years, there are still upside potentials as its population keeps rising while public transportation infrastructure is improving.
“Developers are expanding their footprint to the southern parts of the Klang Valley due to land scarcity in city centres. Newer gated and guarded developments as well as better infrastructure and amenities have attracted homebuyers’ attention to this area,” he explains.
However, heavy traffic and floods may make homebuyers think twice about buying a home here.
Kong says the town has been growing organically over the years. “Proper town planning was often an oversight. This resulted in massive traffic jams during rush hours, severe flooding problems during heavy rains and a chronic lack of car parking space.
“With the impending completion of the MRT system, it is hoped that it will alleviate the horrendous traffic situation in the town centre,” he says. Nevertheless, he adds, there are currently widening and embankment strengthening works on Sungai Jeloh, which runs through the centre of the town.
Kajang was traditionally the home ground of MKH Bhd (formerly known as Metro Kajang Holdings Bhd). In recent years, it has seen the entry of other major property players such as Tropicana Corp Bhd, Naza TTDI Sdn Bhd, Protasco Bhd and Mutiara Goodyear.
The township developments include Tropicana Heights Kajang, Kajang East, Jade Hills by Gamuda Land, Mutiara Heights, Kajang 2, TTDI Grove Kajang and Nadayu 92.
Kong from MacReal International says investors could look at properties around Bandar Teknologi Kajang and other newly completed projects with unique concepts.
“I believe the commercial precinct in Section 1 of Bandar Teknologi Kajang is an ‘unpolished gem’ and primed for success in the near future. It was completed in the late 90s but did not take off commercially due to the lack of critical population mass.
“From a bird’s eye view, you will notice that Section 1 of Bandar Teknologi Kajang fronts the main trunk road between Kajang and Semenyih. More interestingly, you will find that massive housing developments are mushrooming around it,” he explains.
These newly completed and ongoing housing projects include Nadayu 92, Hillview, Kajang Hillpark Homes, Kajang 2, Goodview Heights and Tropicana Heights Kajang.
He notes that upon full completion, there would be about 2,000 homes or more in the immediate vicinity of Section 1 which will eventually create the critical population mass needed for future growth.
Meanwhile, Lim says property investors and homebuyers could also look at properties located in older residential areas near the Kajang town centre or the developments near or in Semenyih.
“Setia EcoHill, Eco Majestic, Semanja Kajang, Puncak Saujana, Mutiara Heights and Kajang 2 could be good choices due to their strategic locations, modern designs and good township planning as well as proximity to various amenities,” he adds.
In terms of rental, Lim says popular places for rental in Kajang include areas close to educational institutions.
According to TheEdgeProperty.com, the asking rental for a terraced house in Kajang averages RM1,400 a month or RM1.04 psf, which translates to a rental yield of about 4.1%.
For semi-dees and bungalows, the asking rental averages RM3,144 (RM0.90 psf) and RM2,676 (RM0.93 psf), respectively.
This story first appeared in TheEdgeProperty.com pullout on Sept 23, 2016, which comes with The Edge Financial Daily every Friday.
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This article is refer from Theedgeproperty.com.my and I found it is very interesting and creative. Its how you design your work space and theme or environment that you desire. Enjoy reading...
New age offices
WORKPLACE design has come a long way from being cookie-cutter and strictly utilitarian. What were venues built to support company processes are now conceived to leverage human capital more effectively. Increasingly, office spaces are designed to not only reflect a company’s values and culture but also prioritise employees’ well-being, and are conducive for creativity and productivity.
In a recent talk held at XTRA Furniture, Kuala Lumpur, Masahiko Kanaya, senior designer at Japanese office furniture and design company Okamura International (Singapore), says, “We believe in a strong visual idea. The first rule is to show and not tell. Secondly, we want to tell a story, to tell the clients who you are through the design.
“We also have to think about well-being. The environment plays a very important role in office designs today.”
There is no question that office design influences productivity. Research by global architect and design firm Gensler reveals that poor workplace design costs US businesses an estimated US$330 billion (RM1.3 billion) in lost productivity each year.
Thus, more and more companies are creating workplaces of stimulating design with dedicated spaces for recreation that facilitate employees’ needs for work-life balance. Lounge areas furnished for non-work-related communal activity, such as foosball, table tennis, yoga and board games, are becoming commonplace in offices as are wellness rooms, daycare facilities and outdoor break areas. Pantries and office kitchens are also given more prominence and come better equipped. All these are to communicate the message that the well-being of its employees is important to an employer.
Part and parcel of the considerations for staff well-being is biophilic design, which is a growing trend. In the US city of Seattle,Bloomberg reports that online retailer Amazon is currently building its massive new headquarters that will feature three 100ft tall orbs, or Biospheres as they are called. Inside, more than 300 plant species scoured from around the world will be planted. Employees needing a bit of respite or just a quiet place to think will be able to take a stroll on suspension bridges among the greenery. Brainstorming sessions can be held in one of the bird-nest-like meeting spaces perched in mature trees.
The Bloomberg article quotes the company’s global real estate director John Schoettler as saying that “they were inspired by Amazon research indicating that a key thing missing from typical work environments is a link to the natural world”.
Apple’s new headquarters in Cupertino, also under construction, is a circular spaceship-like structure that encompasses an enormous outdoor park. When completed, there will be jogging paths and walking trails around the building, and 1,000 bicycles will be kept on site for staff use.
Over in Japan, recruitment company Pasona’s office building in Tokyo, which was conceptualised by New York firm Kono Designs, incorporates a rooftop garden and urban farming facilities — close to 4,000 sq m of dedicated green space houses over 200 species of plants, fruits, vegetables and even rice. Supported by a team of agricultural specialists, employees are encouraged to maintain and harvest the crops.
Recognising the diversity of today’s workforce, companies are also creating a workplace that accommodates this. Says Kanaya, “Offices today consist of people with different cultures, different abilities and various working styles. People today need to communicate and collaborate more. But sometimes we also need to focus. We have to create a space that allows that flexibility.”
Rigidly defined spaces are slowly becoming a relic even as offices embrace spaces with multiple uses. This trend marries the open office concept — which aids collaboration and social interaction between co-workers — with private pods or cubicles that people can retreat to for some peace and quiet when needed. Thus, workstations are becoming more mobile and fluid — an example is the modular system, Muffle, by Okamura.
The definition of a great workplace today does not merely encompass attractive salaries and benefits but also an inspiring physical environment and amenities, to boot.
This article first appeared in the August + September 2016 issue of Haven, which comes complimentary with The Edge Malaysia Weekly.
In this section we will be sharing on articles & news update related real estate and some other interesting topics.