This is the goodies bag
Sunday, April 20, 2014
The Edge Real Estate Investment Forum on Real Estate 2014
Sunday, May 12, 2013
Tuesday, April 30, 2013
The Edge Investment Forum on Real Estate 2013
The annual event that I'm waiting for is finally here. See you @ The Royal Bintang Damansara, 11-May.
Anyway, this is my first blog post from blogger's app via my IPad Mini; is also my first post in 2013. Hope I can post more frequently now as I can "blog on the go" now.
Anyway, this is my first blog post from blogger's app via my IPad Mini; is also my first post in 2013. Hope I can post more frequently now as I can "blog on the go" now.
Friday, December 14, 2012
Jewel of the south
By JOY LEE joylmy@thestar.com.my
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Up and coming: Acacia homes, TTDI Grove, is one of Naza TTDI’s latest developments in Kajang.
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New development: MKH Bhd’s Sentosa Heights in Kajang.
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SATAY comes to mind at the mention of Kajang town. But this once sleepy agricultural town is abuzz with more than just a local favourite dish.
The landscape of Kajang has transformed over the past 40 years as the town plays host to a growing population of people migrating to the big city but looking for an affordable place to stay outside of Kuala Lumpur.
Back in the 1960s, the economy of Kajang was supported by the estates that opened up in the surrounding area including coffee and rubber estates. A town square made up the heart of Kajang and was where the main roads led to and town folks convened to catch up on the day’s gossip.
But as the town drew more fortune seekers, estates were turned into housing projects and highways were built to improve connectivity to Kajang.
The population of Kajang is growing fast. Some estimate that it is growing at close to 9% per annum due to migration.
According to the Department of Statistics, Kajang’s population in 2010 was estimated to be 795,522, making up about 15% of Selangor’s population of 5.4mil though the local town council (MPKj) expects Kajang’s numbers to breach 1mil people by 2013.
Touted as a Greater Kuala Lumpur hotspot, Kajang has much to offer residents and developers alike as development plans for housing and better infrastructure are afoot by various parties.
Jewel in the making
Kajang is located about 21km from Kuala Lumpur and there are several highways that have opened up within the area over the past few years much to the benefit of Kajang.
These include the Kajang SILK Highway and Persiaran Kajang-Semenyih. Other links to the area are Lebuhraya Utara Selatan, Lebuhraya Cheras-Kajang and Lebuhraya Klang Selatan.
These roads offer easy access to and from other popular hotspots such as Puchong, Bangi and neighbouring Semenyih and Cheras.
Additionally, the proposed Sungai Buloh-Kajang MRT line which is expected to come up in 2017, also stirred up much interest in Kajang. Currently, there are three MRT stations slated for the area — Saujana Impian, Bandar Kajang and Jalan Reko.
Greater accessibility isn’t Kajang’s only appeal.
Affordability is a key factor that drives the residential market in Kajang as home buyers can still afford property in Kajang while working in Kuala Lumpur.
According to a property agent based in Kajang, it is still possible to get a double-storey terrace house below RM500,000 in some of the older parts of the town such as Sungai Chua.
“You can get a single-storey terrace house in that area for RM280,000 to RM300,000,” the agent added.
In comparison, agents note that it is not possible to buy into areas like Cheras with RM500,000 and below.
Property reports say that prices of property around the Klang Valley have been rising by 30% year-on-year.
However, there are a lot more new developments coming up in Kajang and most of these are in the mid- to high-end market. A property agent said it was not an easy task identifying the price trend for newer properties.
“Property prices in Kajang vary depending on the types of property. It is not easy to gauge the prices of new developments because the prices keep changing,” said the property agent.
For example, the first phase of Mutiara Goodyear Development Bhd’s gated and guarded Nadayu 92, which was launched in the middle of 2010, were priced at RM433,000 to RM1.02 million.
Note that Kajang is also an education hub of sorts with several esteemed educational institutions in the vicinity including Universiti Kebangsaan Malaysia, Universiti Putra Malaysia, the Nottingham University campus, Universiti Tenaga Malaysia, the German Malaysia Institute and the Australia International School.
Developers’ new playground
About 20 to 25 years ago, Kajang was already recognised as an ideally located town at a comfortable distance from Kuala Lumpur with affordable housing and good infrastructure.
Thanks to the strong demand for housing there, developers have also flocked to Kajang in recent years.
Last year, Ireka Corp Bhd purchased a 20.6acre site in Kajang for RM22.4mil while Dijaya Corp Bhd bought an 80ha tract for RM228mil.
Other major property developers that have claimed a stake in Kajang include UEM Land Holdings Bhd, SP Setia Bhd, Mah Sing Bhd, Naza TTDI, Sime Darby Bhd and local stalwart MKH Bhd, formerly known as Metro Kajang Holdings Bhd.
MKH Berhad managing director Datuk Eddy Chen Lok said land is becoming scarce in Kajang and prices are starting to increase tremendously.
“Also, people are expecting the MRT to be ready by 2017 so property prices are heading towards 2017 levels too,” Chen said.
For example, Chen said prices of MKH’s residential properties have appreciated more than 20% over the past five years. In fact, its two-storey terrace houses project, Hillpark Homes in Bandar Tek Kajang, saw an appreciation value of 58% in one year.
Nonetheless, Chen reiterated that Kajang is still an affordable place to live.
Chen added that residents of Cheras, Putrajaya and Cyberjaya are buying up property in Kajang as cost of properties in Cheras and Cyberjaya has risen significantly while most of the homes in Putrajaya are occupied by civil servants.
But prices in Putrajaya are also on the rise, which bode well for developers’ with projects in the vicinity of Kajang as these areas cater to the spill over demand from Putrajaya.
“We have landbanks that we purchased much earlier. So we are positioned to cater to the market demand that is spilling out of Putrajaya,” Chen said.
He added that some 90% of sales closed in its Semenyih township were done by civil servants.
Apart from serving the migratory market, developers note that there is also a big group of property upgraders in Kajang itself that makes up a substantial demand for higher end properties in Kajang.
Developers have responded to this demand well with more gated and guarded projects as these developments would help them maximise the value of their land.
“Big developers are now more willing to pay a higher price to buy land in Kajang area. They are developing bigger projects for the higher end market because these types of projects have higher appreciation value,” an agent said.
With all the development in store for the town, Chen concludes that Kajang is a jewel in the making.
Sunday, November 4, 2012
RPGT rate for 2013
The recent 2013 Budget proposal has made some increment on the effective tax rate.
Below are summary that i get from RED - News Straits Times @ Friday , 2/11/2012 ; which i think worth sharing here :)
Below are summary that i get from RED - News Straits Times @ Friday , 2/11/2012 ; which i think worth sharing here :)
RM46mil allocated to four restoration projects in Penang
By DAVID TAN davidtan@thestar.com.my
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| The restored Macalister Mansion has 8 hotel rooms, two restaurants and two bars |
The most well-known of these heritage properties restored are the Choong Lye Hock mansion and the Loke Thye Kee building.
The other two restoration projects are by Asian Global Business (AGB) and Public Packages Holdings Bhd involving commercial offices and warehouses built in the early 20th century at Weld Quay and Church Street Ghaut.
The AGB Group is restoring two early 20th century commercial and warehouse properties to be an integrated RM220mil Rice Miller Hotel and Residences, which is an in-fill development project.
An in-fill development involves constructing a project from scratch.
The cost of restoring a heritage project depends on the quality of finishing used and normally ranges between RM300 and RM400 per sq ft.
Sometimes a company spends more for restoration because of the condition and age of the property.
A prime heritage property in George Town can fetch rental of between RM5 and RM10 per sq ft, which means that a 2,000 sq ft heritage property strategically located can generate a rental of RM10,000 to RM20,000 a month, according to Henry Butcher Malaysia (Penang) vice-president Shawn Ong.
The Choong Lye Hock mansion restoration project, located on 48,943 sq ft at Macalister Road, was undertaken by local businessman Datuk Sean H'ng and his wife Datin Karen H'ng.
The Choong Lye Hock mansion belonged to a tycoon and philanthropist, who bought the property in the late-1890s.
Lye Hock is the father of local millionaire Ch'ng Eng Hye and the grandfather of badminton legend Datuk Eddy Choong.
The restored building, now known as Macalister Mansion (MM), has eight hotel rooms, two restaurants called The Dining Room and The Living Room, and two bars called the Bagan Bar and The Den.
Macalister Mansion opened its doors to the public in April 2012.
According to MM public relations director Josephine Leong, the planning and the restoration work for the 17,286 sq ft mansion took about 20 months.
“This is corporate responsibility initiative project to demonstrate that old colonial buildings can be regenerated into useful and practical spaces with a contemporary feel.
“Some eight months were spent on planning the design with a Singapore-based interior design company, Ministry of Design (MOD) to produce stunning interior designs.
“It took us 12 months to restore and reinforce the original columns, staircases and archways, original brick walls and wall cornices.
Leong says the Macalister Mansion project was more about a labour of love.
“The owners want to raise the bar in the boutique hotel scene in Penang. As global travellers, they would like to bring back that differentiated hotel experience where guests get to enjoy a more personalised and intimate level of service within luxurious surroundings,” Leong adds.
Raine & Horne Malaysia director Michael Geh says about RM2mil or about RM630 per sq ft was spent on restoring Loke Thye Kee, known as the oldest restaurant in Penang, at Burmah Road.
According to Geh, a local investment company, Loke Thye Kee.com, set up by Singaporean investors, bought the double-storey property from a local businessman some about six years ago.
“About two years, which included also the time to obtain the green light from the local authorities for renovation, was spent on restoring the building with approximately 3,200sq ft of built-up area.
“It has been leased to a local company called Food People Sdn Bhd, which plans to set up soon a Hainanese restaurant, and food and beverage outlets,” he says.
Known as the House of Happiness in Hainanese, the Loke Thye Kee restaurant was established by brothers Loy Kok Boon and Loy Kok Dai, who leased the building from local businessman and philanthropist Khoo Sian Ewe.
Loke Thye Kee serves traditional Hainanese and Western cuisine such as curry kapitan, choon piah, and chicken chop.
AGB Group spent RM21.5mil or RM860 per sq ft to restore two heritage commercial and warehouse properties built in the early 20th century at Weld Quay.
AGB chief executive officer Dr Noraini Abdullah says the restoration turned out to be costly because a lot of work had to be done for strengthening the physical buildings, as their conditions were bad.
“About RM16mil was spent for restoring and reinforcing the physical infrastructure of the warehouse building, which serves as the event hall of the Rice Miller Hotel.
“Another RM5.5mil was spent in restoring a 5,000 sq ft colonial commercial building that will serve as the restaurant for the Rice Miller Hotel,” she adds.
The Rice Miller Hotel and Residences project is scheduled for completion next August and scheduled for opening in Dec 2013.
It will comprise 48 hotel suites, 99 city residences, which range between 800 and 2,500 sq ft in built-up, 23 retail lots of 600 sq ft, and two blocks of five-storey office buildings.
“In the past 12 months, we have sold 50% of the retail lots and city residences. Most of the buyers comprise Penangites and investors from Ipoh and Kuala Lumpur,” she adds.
Next to the Rice Miller Hotel and Residences project, Public Packages Holdings Bhd (PPHB) is restoring two heritage double-storey commercial properties with over 39,632 sq ft to be integrated into a RM50mil in-fill heritage hotel cum commercial project located at Church Street Ghaut, off Beach Street, which is popularly known as the central banking district.
PPHB hotel project manager Tony Koay says the group would spend RM15.8mil or RM400 per sq ft to restore the two heritage properties with fittings.
“One of the heritage commercial building with 11,000sq ft will be restored as part of the in-fill heritage hotel.
“The other heritage property with 28,632sq ft will be restored for commercial and office usage,” he says.
Koay says the advantage of carrying out infill development work for the heritage hotel project was that one could maximise the interior of the buildings to suit the needs of modern business usage.
The cost per sq ft to develop a heritage hotel from scratch with furnishings is about RM1,000 per sq ft, says Koay.
“A problem with restoring a heritage building for hotel usage is that the interior of such heritage buildings restricts the utilisation of space,” he says.
Koay adds that the in-fill heritage hotel would have over 150,000 sq ft of built-up area, 150 rooms, a business centre, meeting rooms, two-level of basement car-park, and retail shops on the ground floor.
“The architectural style for the hotel follows the design of late 19th and early 20th century port offices and warehouse buildings in George Town.
“We are targeting the upmarket tourists,” Koay says.
Higher prices with heritage status
By DAVID TAN davidtan@thestar.com.my
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| The Coffee Atelier, comprising 5 prewar buildings at Stewart Lane. |
Henry Butcher Malaysia (Penang) vice-president Shawn Ong says that prior to George Town's listing as a Unesco World Heritage Site (WHS) in 2008, the properties were selling from between RM300 and RM600 per sq ft.
“In view of the limited units of pre-war properties available in Penang, pre-war buildings with unique characteristics are generally attracting a lot of buying interest.
“Therefore, it is quite common for pre-war buildings available for sale being snapped up by investors, pushing up the selling price.
“The majority of buyers are Malaysians contrary to perception that more foreigners than Malaysians buy pre-war properties.
“A notable recent transaction is the sale of 30 units of pre-war shophouses in Nagore Road, George Town to investors,” he says.
According to Ong, the rentals of pre-war buildings of larger size in George Town's prime zones generally fetch RM10,000 to RM20,000 per month, compared to between RM5,000 and RM8,000 before George Town's Unesco WHS status.
“Locations such as Armenian Street, Stewart Lane, Chulia Street, Love Lane, and Muntri Street, due to their proximity to Little India and Khoo Kongsi, are among the most sought-after areas for heritage properties in George Town,” Ong adds.
The selling price of heritage properties in Penang has risen by about 10% this year compared with 2011, according to Ong.
According to Henry Butcher's Penang Real Estate Market Report, the total number of pre-war buildings within the conservation area of George Town Unesco WHS is 4,665, with 2,344 units at the core zone and 2,321 units at the buffer zone.
The core zone covers 109.4 ha bounded by the Straits of Malacca on the north-eastern tip of the island, Love Lane to the north-west, and Malay Street Ghaut and Dr Lim Chwee Leong Road to the south-west corner.
The core zone is protected by a 150-ha buffer zone bounded by Dr Lim Chwee Leong Road to the south-west and Transfer Road to the north-west.
According to PPC International Sdn Bhd director Mark Saw, the number of heritage property transactions for Penang in 2011 was 228, compared with 211 in 2010.
“Most of these properties were for double-storey pre-war houses in the north-east district of the island.
“Those with the foresight to invest in heritage properties before George Town received the WHS status would see the value of their properties increased substantially today.
“In the market presently, there are large-size heritage properties in inner George Town selling for more than RM10mil,” he says.
One such heritage building in inner George Town with a built-up and land area of 10,000 sq ft and 5,762 sq ft respectively is the No. 25 China Street, a double-storey property built in 1846 by Kapitan Chung Keng Kwee.
Malaysian-born David Wilkinson, who owns the property, says he bought the property in 2005 and spent over RM2mil to restore the building, which took about two years.
“It is the largest property on China Street as the building is equivalent to three shophouses. The property is being used as a private residence, but has the potential for commercial usage as a special heritage museum,” he says.
Another sizable heritage property in inner George Town that has seen its value rise substantially since 2008 is the row of five pre-war houses on Stewart Lane now collectively known as Coffee Atelier, comprising a coffee house cum restaurant, museum, art gallery and four hotel rooms owned by Stefan Gehrig and his wife Lorina.
Stefan says he purchased the five properties, which had a total built-up area of 8,160 sq ft and land area of 4,800 sq ft, for RM3.5mil in 2010.
He adds that he had recently received an offer of RM6mil for the properties.
“The five unique heritage properties were built in 1927 and were called shophouses because the original inhabitants carried out their trades on the ground floor, and lived with their families on the upper floors.
“One of these shophouses was once a coffee merchant's workshop in 1988.
“The name Coffee Atelier' derives from this element of the building's history and celebrates the memory of this artisanal trade from a bygone era,” he says.
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