Property360 Digest E- MAGAZINE Property360 Digest Issue 5

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during MCO…

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CONTENTS COVER STORY

Strategic Production Zones – Rapid Response to COVID19

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HIGHLIGHTED HAPPENINGS

Selected news that you should know about from April to June 2020

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TALKING POINTS

It is time for Smart Investing by Gunaprasath Bupalan

COLUMNIST

Bruce Hope talks to us about Controlled Systems: The future of pools after MCO

COLUMNIST

Ikhram Merican talks to us about liquidity

COLUMNIST

Charles Tan talks to us about working from home

COLUMNIST

Dato Chang Kim Loong talks to us about Mixed-developments to see unfair charges

PROJECT REVIEW

Vista Sentul Residences by Platinum Victory adds to the impressive skyline of Sentul

SECONDARY MARKET HIGHLIGHT

Exploring secondary projects that are worth your investment consideration

WORLD WATCH with KNIGHT FRANK Buyer Survey of the Secondary Market

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SPOTLIGHT

Mah Sing crowns Rawang with a new jewel

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COMMENTARY

The PENJANA and What it means to you

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PROJECT REVIEW

Elemen Residences by Tropicana promotes Healthy Lifestyle

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From The Desk of The Editor Dear Readers, Welcome to the 5th edition of Property360Digest e-magazine. Firstly, let me take this opportunity to wish all our Muslim readers Selamat Hari Raya Aidilfitri as we didn’t get to at the appropriate time.

The last few months have been difficult times for many of us. Property360Digest wasn’t spared from the dismay too. We battled through very lengthy discussions with developers, real estate professionals, selected reader groups as well as internally to come up with a decision on our endeavors. The verdict was to hold publication for the MCO period.

It was very sad to follow through with this decision simply because we had just completed our 4th issue at that time and it was successfully downloaded by more than 10,000 people nationwide. But, due to uncertainty from every aspect, we had no choice but to temporarily seize operation until further notice.

Now, four months after the initial MCO announcement regarding the Covid-19 pandemic and by the grace of God, we have battled our way positively towards much lower numbers of affected cases, we believe it is time for us to once again return.

We would like to thank all the front-liners who braved the pandemic and risked their lives for us throughout the MCO, CMCO and even now during the RMCO. Without your selfless contribution to the nation’s wellbeing, we could not have achieved this.

Amongst the industries that have been affected is also the Property Industry. With homebuyers and investors keeping at bay, it has caused new and unsold projects to accumulate. The Government’s recent incentive called PENJANA (which we shall discuss in more dept in the magazine) has to a certain extend offered a crutch to buyers, investors and sellers to once again revive the market. We personally believe that the PENJANA may not be enough, but it is a good start to begin with the revival.

In this issue of Property360Digest e-magazine, we shall take a look at new and upcoming projects that are worth your investment consideration. We shall also take a dive into the secondary market and highlight some chosen ‘ready’ units that may be worth your time and effort. We have spoken with industry experts and bring you some exclusive reports, news-pieces, contributions, features, commentaries and spotlight stories that will surely keep you abreast with what is happening in the property industry (basically, what we feel you should be aware of).

So, sit back, enjoy your coffee and read away…

PS: SELAMAT HARI RAYA HAJI (at least we are on track to wish our Muslim readers this time).

Thank you

Next, we would like to share our deepest condolences to all the families who have lost loved ones to this obnoxious pandemic that has plagued our country and the entire globe. We will pray for all their souls and hope that you are able to stay strong.

As we are all aware, this pandemic has hit many global business industries hard. Many companies had to either shut down or suffer staffing pay cuts and layoffs, that is never a good thing. We thank God that at Emjay Communications, we have managed to maintain a good front for all our colleagues, partners and business associates and we pray that the aftermath of this Covid-19 threat ends sooner than anticipated.

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Gunaprasath Bupalan Managing Director - Emjay Communications Managing Editor – Property360Digest

THE TEAM PUBLISHER

BUSINESS DEVELOPMENT

EMJAY COMMUNICATIONS

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MANAGEMENT & EDITORIAL Gunaprasath Bupalan Managing Editor gp.emjay@gmail.com Rachael Raymond Content Director rachael.emjay@gmail.com EDITORIAL DESK Rakesh Kumar Features Editor Sarah Rae Senior Writer John Tyler Features / Reviews Circulation Manager and Traffic Controller CONTRIBUTORS Datuk Chang Kim Loong Bruce Hope Charles Tan Ikhram Merican

Ikhram Merican Special Projects WEBSITE Anandraj Letchimanan Web Content Director Global Apps Solution VIDEO / PHOTOGRPHY Ivan Teh Choon Yew 4YewPhotography GRAPHIC / LAYOUT Siew Pakaporn mulansiew@gmail.com VENTURE BUILDING & BRAND CONSULTANCY Biresh Vrajlal Sneaky Zombie Sdn Bhd

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The publisher (Emjay Communications) or its Directors / Shareholders will not be held liable for any form of misinformation or breach of any aspect.

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COVER STORY

Strategic Production Zones – Rapid Response to COVID19

By Nordin Abdullah

The recent announcement that a committee jointly chaired by senior ministers in charge of security and economy clusters respectively demonstrates that the Malaysian government is serious about creating a balance between continued safety of the general population and the survival of the economy.

The Malaysian property sector has not gone unscathed by the crisis that is COVID19. The construction sector, the conveyor belt that delivers dream homes and the industrial properties alike have been under the microscope as many clusters broke out in the working population on various sites.

One could be easily drawn into doomsday scenarios, but that couldn’t be further from the truth for property investors. This coupled with the fact that the government, industry and various regulators come together to solve problems in a targeted and timely fashion.

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Under the microscope, many clusters broke out in the working population on various sites.

In the global context, as many countries struggle to deal with the medical response to COVID19 this step represents a broader and indeed a rapid response to the COVID19 crisis. The clearly stated objective of this new committee is to balance the medical risks and rewards of increased production during the current situation. This rapid response is testimony to Malaysia’s currently rank of 12th in World Bank Doing Business 2020 report.

From the perspective of crisis management all scenarios need to be taken into consideration. This includes the scenario that a prolonged crisis becomes the new reality that people and companies must be able to function through.

With this possible reality, innovation coupled with a radical departure from contemporary thinking is required.

The Prime Minister’s announcement that a large percentage of industry can return to work, with the exception of quite a few industries and activities, looked like it would solve the problem. However, it has revealed another potential soft underbelly. The regulatory reality that the various states have degrees of control over certain activities and through state or local government issued licensing can look to assert their will on the situation.

Balance is needed in both areas – health and economic activities.

The question remains, are we able to manage both health concerns and economic activities? The key to unlocking that door will be the ability to demonstrate a reasonable likelihood of no workplace transmission of COVID19 and into the future the next threat to life as we know it.

A proposed solution could be the designation of “Strategic Production Zones” in various locations around the country. Industrial zones that are also “green zones” confirmed COVID19 free and able to have managed flows of human capital together with production flows.

A quick checklist of key components of what these zones would require include but not limited to the following; close proximity to a port or airport, temporary onsite accommodation or centralized accommodation, medical screening facilities, additional onsite medical support and central kitchens to ensure availability of food.

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Properly zoned housing areas are crucial in these times.

From the perspective of housing and accommodation there will be a need for a properly zoned housing area that can serve as a satellite housing to these industrial zones. If done properly that will be both part of a “resilient” solution during a crisis and become sort after housing. Enter the property investors who want to have good tenants and be in a strategic location. There is much to play for in the post COVID19 property game.

In addition, applying the concept of Fly-in Fly-out or FIFO, which is used in the mining and energy sectors to allow workers to be on site for a period of time and then flown out while being replaced by other workers. This would allow the expansion of production beyond the current highly critical food and medical supplies.

discussion between stakeholders for expanded production during this time.

While many SME’s have their heads on the cutting block, some of the larger corporations will not be far behind if supply chains and the related ecosystems grind to a halt. Supply chains are complex and this crisis has been a strict task master in the lessons of interrelatedness of local and international supply chains. While we attempt to flatten the COVID19 infection curve we can’t ignore the steep learning curve has not changed.

Can the concept of “Strategic Production Zones” be applied to the current situation considering the country’s current capabilities?

The police and armed forces have successfully cordoned off various “red zones” and the different agencies have Corporations that are chomping at the ensured that those in the affected areas bit to return to partial or full production receive food and medical attention. need to remember that on any level, a sustainable business model requires At the same time, several risks have customers to remain alive to continue become accepted norms, this includes to buy goods and services well into the the movement of cargo overland and future. On the flipside of that same coin, air, reduced and registered workforce at this time it’s important to remember in critical industries, operation of the that public health is a luxury that is banking sector and the controlled only made possible by a functioning movement of the population to economy. purchase food to name a few. These combined factors leave space for the PROPERTY360DIGEST

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Malaysia will need to act quickly to take advantage of its COVID19 response street credibility which was hard won during the MCO, CMCO and now during the RMCO. How will all stakeholders work together to bring in the property investors?

Innovation and resilience from all stakeholders will be required to shape a positive and sustainable future. If workers and corporations alike are concerned about their shared financial realities, they will have to continue to adapt to the changing conditions during times of crisis to ensure production.

Housing and the planning that needs to go into future townships and communities will be just the start, the preverbal silver lining to the current situation in the property market.

Nordin Abdullah is the Managing Director of Glenreagh Sdn Bhd and Founding Chairman of the Malaysia Global Business Forum. He writes on issues that promote advocacy and understanding of complex relationships between corporations, governments, academia, non-government organisations and the media.

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Real Estate Experts Believe Malaysian Property Market Better Prepared Now, Compared to Asian Financial Crisis in 2008 Compiled and Edited by Rachael Raymond NEWS & HAPPENINGS Highlighted Happenings from April 2020 through June 2020 private limited companies, as well as individual property buyers, are in a better position now compared to the Asian Financial Crisis of 2008.

Three real estate industry veterans invited by the Malaysian Institute of Estate Agents (MIEA) recently shared their insights with the on the current real estate market outlook amid COVID-19 and the MCO, were optimistic. Speakers included Eric Lim, Founder and Group Managing Director of Hartamas Real Estate Group, Datuk Seri Michael Yam, CEO and Managing Director of Impetus Alliance and Stephan Tew, Director of Axis REIT Managers Bhd.

(Datuk Seri Michael Yam) PETALING JAYA, April 2020: The real estate industry, players and financial institutions are expected to come out of the post-COVID-19 and post Movement Control Order (MCO), relatively unscathed.

The forum held via a social media platform is a part of the MIEA HOPE Programme aiming to help MIEA members to enhance themselves during the current uncertain times.

The two-hour forum “The First MIEA Multi-Sector Market Outlook” which took place on 23rd April 2020, was moderated by Previn Singhe, Managing Director and CEO of Zerin Properties.

The veteran real-estate industry trio shared their thoughts on the residential, commercial and industrial sectors of the property market outlook.

They also looked at the property This, as real estate industry experts, market’s exposure, the steps taken to believe that the sector, its players, alleviate the impact of COVID-19 as well financial institutions, large firms and as the MCO and the measures taken to PROPERTY360DIGEST

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mitigate the effect in moving forward in the sector.

Previn in his opening remarks said the nation’s property market was showing signs of recovery before the COVID-19 pandemic and the MCO being imposed.

However, he said there was also no rush by the corporate sector to lease offices and also, both commercial and residential properties were also feeling the pressure of property oversupply.

“How COVID-19 would affect the property market in Malaysia is tough to predict,” he said.

Immediate past president of MIEA, Eric Lim said before the MCO was imposed, the gap between the asking price of a property and the offer price was somewhat slightly wider.

However, in the current situation, property owners were willing to lower down the asking price to a more reasonable level. “Hence, this is a great opportunity to purchase residential properties if one has the financial ability.”

(Eric Lim) capitalised now. Many large firms and public limited companies (PLC) are into liquidity financing rather than being dependent on bank borrowings.”

Lim added that many developers are In terms of new residential property, also seeking for a joint venture with Lim believes that developers are also landowners, making it much more offering more attractive packages manageable in times of crisis. including additional discounts, higher rebates, furnishing, etc to attract more Tew added by saying that banks are buyers. now more proactive this time around by offering stimulus packages and loan Yam said the current situation is also deferments to help many business a golden opportunity for developers owners and individuals during this time to relook into the market and also to of crisis. expand their capacity. Lim, meanwhile believes that the nation’s current He also highlighted that different economic situation is in a much better economic sectors are also affected position, compared to the 2008 Asian differently and the key is to understand Financial Crisis. which sectors would be affected badly.

“Our banks are much stronger and well Based on experience, small business PROPERTY360DIGEST

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owners especially those whose earnings are based on hand to mouth basis are the ones that are likely to be affected the worst, he said.

To spur the real estate market, Yam is hopeful that the government would continue the Home Ownership Programme (HOC) where it has helped not only developers but buyers too.

In addition to purchasing a property, bank interest rates could also be maintained and the government could also review the Real Property Gains Tax (RPGT) policy.

Tew added that the government should encourage more buy and sell activities, ultimately by lowering the RPGT momentarily as stamp duty and other charges helps the government raise

more money than income from RPGT. Lim also added that the relaxation of the existing lending policy by Bank Negara would also help spur the property market, further.

Besides, he said the lowering of the foreign property buying threshold in Selangor would enable more foreigners to purchase properties., which would also contribute towards reducing the existing property overhang and address the glut in the property market.

MIEA will be continuing their MIEA Hope Programme through their Facebook platforms and ZOOM every day at 10:00 am and 3:00 pm to help members to improve their professionalism and overcome possible obstacles during and post MCO.

Star Residences Shines With Malaysia Book of Records Entry For Biggest Mosaic Tiles Wall Mural Art

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Kuala Lumpur, June, 2020 – Star Residences, the city’s newest benchmark for luxury living, continues its award-winning, record-setting ways with an artful entry into the Malaysia Book of Records for the nation’s biggest mosaic tiles wall mural art, that is visible from up to two kilometers away.

The four-acre (1.62ha) Star Development located on Jalan Yap Kwan Seng in the KLCC Central Business District of Kuala Lumpur with a gross development value of RM3billion has bagged several international awards namely International Property Awards, London for Best Apartment Design, Best MixedUse Architecture Design and Mixed-Use Development Concept; and Malaysia’s BrandLaureate Best Brand Award, in Signature Brand Property Luxury Condominium category.

The monumental mural arts impart an even stronger sense of place to the development.

The three imposing 3-storey mural walls with a combined length of 58.77meters are installed on the highest floor of the three towers comprising Star Residences, a 57-storey tower and two 58-storey towers, including the Ascott Star KLCC Kuala Lumpur. Residents and guests can view the murals from any of the three towers, while taking in stunning views of the city from the tallest residential property in the KLCC enclave.

The developer of Star Development, Alpine Return Sdn Bhd is a 50:50 joint venture company between established Malaysian property developers, Symphony Life Bhd and United Malayan Land Bhd (UM Land).

The stunning glass tile works in a bold palette of platinum, gold, white and black hark back to opulent Roman murals but with a contemporary twist. Inspired by nature, myth and environmental conservations the abstract installation was envisioned and conceptualized by the Chief Executive Officer of Alpine Return Sdn Bhd, Mr Alan Koh.

“Place making sets Star Residences apart making it aspirational icon of the KLCC area. We challenged ourselves to create a visual narrative that could capture the opulence, elevation and brightness of Star Residences hence the use of gold and platinum. We believe that these majestic glass tile mosaic mural walls art, the longest and the tallest at an elevation of over 250 meters are a first in Malaysia, and possibly in the region. This is a gift to our residents and guests, and to visitors to Kuala Lumpur as it is visible from afar.

While the Covid-19 pandemic has significantly reduced tourists to the city, the Star Development is certain that better days are ahead,” Mr Alan Koh says.

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The process of assembling the mega murals took three months, and a further two months to install by hand.

Approximately 6.7 million 10mmX10mm X4mm Mozetti Classic mosaics were used to bring the three murals to life with detailed color transitions for a seamless finish. Total costs for the project is estimated at RM1.5million.

Beyond earning Star Residences, a place in the record books, the mural arts highlight the company’s commitment to finding equilibrium between conservation and development, while straddling contemporary issues by employing an ancient artform. Star Boulevard and Star Walk of Fame, five blocks of six-storey units for retail, food and beverage, and entertainment within Star Development are bustling again, while observing social distancing

requirements.

The award ceremony was attended by Mr Alan Koh, Chief Executive Officer of Alpine Return Sdn Bhd, Mr Teo Lian Seng, Project Director of Alpine Return Sdn Bhd, Mr Billy Teoh, Sales and Marketing General Manager of Alpine Return Sdn Bhd, Mr Jwan Yeow Hooi, Director, Business Development, Malaysia Book of Records and Mr Edwin Yeoh Tiong Chin, Operations, Research and Marketing Manager of Malaysia Book of Records.

According to Mr Jwan Yeow Hoi, Director, Business Development, Malaysia Book of Records(MBR), Star Residences is one of the first entrants into the Malaysia Book of Records since the Movement Control Order to flatten the Covid-19 curve began.

PROPERTY PURCHASERS SNAP UP RM 200 MILLION WORTH OF PROPERTIES OVER MCO PERIOD Sunway City, May - Sunway Property recently announced that purchasers have snapped up RM 200 million worth of its properties as a result of its digital campaign, “Always With You” in less than a month since the campaign’s roll out in end April during the MCO period.

The campaign also takes into the account the current conditions and rise in uncertainties, with Sunway Property assisting with financial aid and competitive pricing so that everyone can own their dream home.

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Sunway Property Managing Director, Sarena Cheah said that the campaign was launched in response to the COVID-19 situation.

“The ‘Always With You’ campaign was launched in response from the feedback we had from customers who were still keen to own a home but were cautious of the economic conditions as a result of the pandemic. To minimise their risk for home ownership, we have included a voluntary exit plan as part of the campaign,” she added.

Due to the pandemic, there are rising concerns on job security accompanied by uncertainties of the current situation.

As such, the voluntary exit plan is being put in place to allow customers to still purchase their dream home with an ease of mind as they are able to exit the purchase in the event of a loss of employment and obtain a refund. The voluntary exit plan is also applicable in cases of disability or critical illness up to 12 months from the signing of the sales and purchase agreement or up to vacant possession, whichever is earlier.

During the campaign, homeowners are also able to enjoy a subsidy of up to RM 50,000, interest-free instalment plan of up to 24 months, a flexi financing scheme to cater to different customer needs and opt for a guaranteed loan up to 95% by Sunway.

Cheah added that the digital campaign was launched in tandem with the shift in customer behaviours as a result of the Movement Control Order (MCO) and Sunway Property will continue to focus on social media and online digital marketing channels to reach out to interested buyers.

“As consumers shifted their purchases online during the MCO, we had doubled up our customer engagement online, interacting with our customers through virtual tours, live chats and other digital channels. During our engagement with them, some of our customers highlighted their concerns about uncertainty yet are increasingly aware of the need to have well-built and welldesigned homes, and the importance of homes as safe havens as they are spending more time at home because of the pandemic.”

“As a result of the campaign, purchasers have snapped up RM 200 million worth of properties, signalling to us that the demand is still strong. And for that, we have our home purchasers to thank, for their trust in our brand,” she said.

(Sunway Citrine Lakehomes) The campaign includes Sunway Property’s latest properties including seven developments in Klang Valley (Sunway GEOLake Condo and Townhouse, Sunway Gandaria, Sunway Avila, Infiniti 3, Sunway Serene and Sunway Subang), one in Ipoh (Sunway Onsen Suites), three in Penang (Sunway Cassia Semi-D and Terrace and Sunway Wellesley), and five in Johor (Sunway Citrine Lakehomes, Sunway Citrine Residences, Sunway Emerald Residence, Sunway GRID Residence, and Sunway Lenang Heights).

Nippon Paint launches Malaysia’s First E-Store for the Coatings Industry Selangor, June 2020 – The COVID-19 pandemic has changed the way we live our lives. With the various phases of movement control orders (MCOs) in Malaysia, the consumer shift in becoming more reliant on e-commerce platforms, cashless payments and PROPERTY360DIGEST

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contactless deliveries is inevitable and will continue to be the new normal.

In response to this shift, Malaysia’s No. 1 coating solutions provider, Nippon Paint Malaysia (“Nippon Paint”), officially launched its e-store, the first e-commerce platform for a one-stop online shop for painting needs within the coatings industry in Malaysia. The e-store comprises of a comprehensive range of painting tools, supplies as well as advisory guides for customer convenience.

The e-store aims to provide consumers with a seamless experience journey, as close to what one would experience when buying paint at a physical store.

From paint category selection, colour selection, as well as painting tools, the e-store provides a step-by-step guide for customers. In response to the COVID-19 pandemic, self-pick up and contactless delivery options are now made available to meet customers’ needs and peace of mind. Customers can expect deliveries to be fulfilled within 3 to 7 working days. Nippon Paint’s e-store is accessible via: https:// shoponline.nipponpaint.com.my

(Gladys Goh, Group General Manager of Nippon Paint Malaysia Group)

Gladys Goh, Group General Manager of Nippon Paint Malaysia Group.

According to a research study done by e-commerce ecosystem of technology and big data solutions company Commerce.Asia, the gross merchandise volume growth surged by 149% yearon-year in the first quarter of 2020 since the MCO was enforced in Malaysia.

This research unveiled that there is significant growth in our merchants’ sales across various product categories, “The roll-out of Nippon Paint’s e-store leading to a foreseeable permanent was timely in response to the COVID-19 change in consumer behaviour to online pandemic. As consumers shift to purchases even after the MCO is lifted. prioritise their health and safety while observing social distancing, online Having observed this shift, Nippon platforms and contactless deliveries Paint’s e-store was also conceptualised open new doors of opportunities for with its dealers and business partners us to continue to engage with our in mind. The e-store will be the “virtual consumers and business partners. hub” for dealers to continue to serve Taking on the market leadership role, and engage with customers in the this is one of the many ways that we digital space, while operating in the look to innovate and pivot during this new norm. Customers will be able unprecedented time, as we respond to to access paint solutions closest to the shifting needs of our customers” said PROPERTY360DIGEST

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their locations, leveraging on Nippon their customers. Just recently, Nippon Paint’s wide network of dealers within Paint Malaysia hosted a Business Retail Malaysia.

Transformation Talk for more than 150 business partners to share interesting Understanding that Malaysians and insights on the changing consumer naturally homeowners are reliant landscape in the coatings industry, and on experts and dealers for paint how they can remain relevant in today’s and coatings solution, the e-store digitised business world. is also equipped with a Customer Engagement Advisory team that is The Nippon Paint’s e-store is part of responsible in providing guidance and Nippon Paint’s transformation journey, recommendation to the customers via which showcases the products and Online Chat. Customers who are on service offerings it has to offer, along the platform will also be able to utilise with the wide network of dealers that is features such as Paint Calculator and able to serve customers effectively. As Paint Estimator to help provide better part of its innovation journey, the Nippon gauge on the right amount of paint Paint’s e-store aims to continuously required for their homes. inspire consumers to be creative in the comfort of their own homes amidst the “The pandemic brings about pandemic. unforeseen circumstances. What is certain is that the retail business has As the market leader in the coatings suffered the brunt of it and are now industry with a database of over 10,000 facing challenges to pivot for recovery. paint formulations and a network of Thus, the e-store was conceptualised more than 3,000 dealers nationwide, to provide a relevant channel for Nippon Paint will continue to push our business partners; dealers and boundaries and pivot, implement hardware shop owners who may not innovative solutions, opportunities for have the resources or expertise to its consumers and business partners initiate an e-commerce platform. This is during this time. our support and commitment to them, and we are certain that the e-store will push boundaries and contribute to their business recovery while at the same time, provide end-to-end paint solutions for our consumers,” added Goh. Nippon Paint has been leveraging on technological advancements and helping business partners and dealers to adapt to the various changes in today’s digital age. Various strategic plans have been put in place to support its network of dealers which enables them to provide a seamless experience for PROPERTY360DIGEST

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TALKING POINTS

Real estate investments are one of the most secure types of investing nowadays. We all know that stocks and bonds can be badly affected by recessions, as we had experienced during 2008. Real estate on the other hand, has the capacity to increase in value as time passes even as an effect of economic fluctuation.

The original Golden Triangle emerges again

By Gunaprasath Bupalan

Here’s a tip for all you bidding investors out there:

The ‘original’ Golden Triangle

Good real estate investments give you better leverage hence makes it a desirable collateral for loans. The earning capacity for these types of properties makes it an attractive mortgage subject for banks and other financial institutions. Good real estate investment appreciates over time or increases its net worth through the years.

Real estate is an investment where you can have a “say” on what happens to it. You can decide what to do with the investment and not just let others do the thinking for you as what happens with investments on stocks where a board of directors generally does the overall decisions for your investments.

However, it isn’t always a bed of roses as it is made out to be. Real Estate investment needs a lot of research and clever involvement. Hasty decisions may not fare well unless you have the capabilities to sustain the repayments for a very long time and enjoy its capital appreciation at the end of the day.

Smart investments on the other hand would come from thorough research initiations.

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Based on the above drawing, you can see that many years ago there was a road that was built that connects Kuala Lumpur, the Central Business District (CBD) with Port Klang, the import and export central. This was how most trade took place. Then in the 1965, the Sultan Aziz Shah airport was built replacing the Sungai Besi Airport. This created a new gateway for import and export as well as travel, complementing that of Port Klang. This instantly created a triangle (which I like to call the original Golden Triangle). My reason for this name is simply because this triangle created golden opportunities for the property industry and golden investments for homebuyers as many pockets of townships were eventually

created to support the influx of jobs that were offered. Areas such as Kelana Jaya, Damansara, Bangsar, Old Klang Road, Subang Jaya and many more started to mushroom. Those who saw the potential of capital appreciation at that point in time reaped the benefits.

History repeats itself with another Golden Opportunity

Gunaprasath Bupalan is the Managing Editor of Property360Digest and Managing Director of Emjay Communications, host of Jalan Jalan Cari Rumah, host of Property on TRAXX, Property and Business columnist for www. malaysiaglobalbusinessforum.com and www.newshubasia.com. He is also the Chairman of the annual Malaysian Property Press Awards and regular speaker, moderator and facilitator for ASLI, Comfori as well as MAPEX.

Now, looking at this diagram, can you see the new Golden Triangle that has emerged? Yes, the Seremban Highway that connects Kuala Lumpur CBD to the next megapolis (Seremban) has created a new triangle with the presence of the Kuala Lumpur International Airport (KLIA). Properties in housing areas such as Sepang, Mantin, Nilai, Bangi, Semenyih, etc have been growing in value since its inception. With its capital appreciation that has yet to reach its maximum, there is much investment growth potential in these areas.

So, there you have it. I have done some research for you. Now it is up to you to expand this research and make the best of your real estate investment.

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COLUMNIST

Controlled Systems: The future of pools after MCO?

By Bruce Hope

Pools are back! Post MCO, swimming and disadvantages. Manual dosing pools are allowed to operate under strict SOP. One of the biggest changes (and challenges) is testing the water chemistry (chlorine and pH) every 2 hours. This is to ensure the water is always safe for use, however testing every two hours requires having people available to do the testing, and also the means to adjust the chemistry (add chlorine) when required.

Testing is generally performed manually using a test kit. A water sample is taken and a reagent added. The resulting colour indicates the chlorine and pH levels. While this is effective it is time consuming. An alternative would be to install inline realtime chlorine and pH sensing equipment. The results could be displayed real time and automatically logged.

Another area that could be addressed is the method of pool sanitising: manual vs semi-automated vs controlled systems. All have their advantages PROPERTY360DIGEST

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of chlorine is the cheapest and is the most common method in Malaysia, if not globally. Manual dosing is generally performed daily for hotels, however condominiums and other facilities may have a gap of two or three days. Our definition of semi-automated is the use of dosing pumps to inject chlorine, or using salt water chlorinators to produce chlorine. The advantage of semi-automated systems is that the pools are always being sanitised. The disadvantage for both manual and semiautomated is that neither of them can respond to events such as extremely hot weather, large numbers of bathers or heavy rain. Controlled systems are where an automatic control machine such as a PPM controller uses probes to check the pool chlorine and pH levels, and automatically adjust as required.

Rest assured, all three sanitising methods can provide safe pools, however, the testing frequency requirement for each method is different and may require different rules.

Our opinion is that controlled systems are the future of pools, to ensure that the water is in optimum condition at all times.

Tips for pool owners â—?

Ask your pool contractor to show you their test results.

Remember ideal chlorine is 0.5ppm to 1.5ppm and pH is 7.2 to 7.6

â—?

For private pools we recommend a minimum of 8 hours pump run time per day for best water clarity.

Who knew?

Chlorine exists in the human body as a chloride ion. The Chloride ion regulates osmotic pressure and pH and aids digestion in the stomach.

Monthly Special For all readers of this article, we are offering (for a limited time) a free onsite pool inspection within Klang Valley. Please contact Beribu Jaya at sales.service@beribujaya.com.my and use the code MOSPOSV as a reference.

About the author Bruce Hope is owner and CEO of Beribu Jaya, the leading swimming pool services company in Kuala Lumpur.

Beribu Jaya is a panel supplier to many of the leading hotel and property management companies in Klang Valley. Bruce, a New Zealander, who has been in and around Malaysia since 2003, is passionate about all things outdoors and when he is not around a swimming pool, in his spare time does marine conservation.

www.beribujaya.com.my PROPERTY360DIGEST

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How Liquid are you?

By Ikhram Merican

Many years ago, my father built his dream house in Petaling Jaya. It was a masterpiece in its time. He hired a wellestablished architect from Canada, and together with my mum raised a beautiful structure.

Not so many years later, my father’s company was forced to restructure. Top management was laid-off, including my father. Keeping the house became a burden. Eventually, my parents decided that they would have to sell it.

COLUMNIST

If his circumstances were to become difficult and the bank forecloses his apartment, he may not have a property and still be in debt.

Properties Are Not Very Liquid Amongst the many investment vehicles out in the market, properties remain one of the best. It is relatively safe, and through leverage can yield fantastic returns. However, properties are not liquid.

Everyone buys property with the You can convert shares into cash expectation that the value of that almost immediately. You could make property will increase. Most of the time a withdrawal on your fixed deposit as it does. soon as the bank opens if you urgently need funds. But you cannot convert a But does an increase in your property property into cash overnight. value translate to real wealth?

Even if you found a buyer for your I know of a person who wants to sell property today, it would take anywhere his apartment. The market value for the from 3-6 months to complete the property is RM3.35 million. He bought transaction. it at RM2.2 million. The gain looks great on paper. However, he has been trying Avoiding Liquidity Pitfalls to sell it for over a year now.

You may be tempted to think that only The property value means nothing to high-end properties have liquidity him in the present. Until he can sell the problems. You would be wrong. apartment, even a value of RM5 million would mean very little to him.

Apart from the fact it takes 3 months or more to complete a sale transaction, If his circumstances were to become there are other factors that can prolong difficult and the bank forecloses his the sale of any property. apartment, he may not have a property and still be in debt.

A RM300,000 house in the Klang Valley PROPERTY360DIGEST

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may be difficult to sell because it is next to a sewerage treatment pond.

An otherwise attractive and affordable apartment may be impossible to sell because there was a suicide on the same floor.

will have a tough time finding buyers.

Some liquidity factors may be outside your control but with a bit of planning, you can make it easier to liquidate.

In conclusion, properties are great investment vehicles but it is very important to know how to manage its liquidity factor. The ability to manage this is the difference between a sound investment and a risky investment.

1. Remember that property is not very liquid

More often than not, spending a little money to make your property look attractive increases the chances of selling it.

NEVER plan to rely on your capital gain for emergencies. You need to have very liquid assets like cash, stocks, or insurance as contingency reserves, not property.

2. Plan your exit When you buy a property, plan your exit strategy.

You may want to sell it after 10 years to upgrade or perhaps sell it to pay your son’s college tuition. Either way, knowing when you want to exit is important to realizing gain.

3. Look at demand factors Buy properties with strong potential for demand. You should consider infrastructure, connectivity, affordability, and layout of the property.

4. Emphasize perceived value over market value Your property may have a market value of RM500,000 but if it is perceived to be worth less because it is rundown, you

Ikhram is a certified content marketer, public speaker, and author of The Ultimate Guide to Buying Property. Ikhram’s specialization is in property markets and personal growth.

The Asian Property Review, in 2017, called him “one of the most experienced and successful AirBnB hosts in Malaysia”. He shares insights about the property market on his blog at www.LivingSpace. com.my.

Ikhram holds a Bachelor’s Degree from Monash University with double majors in Strategic Management and Electronic Commerce.

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COLUMNIST

Work from home?

Really?

By Charles Tan

The new norm needs to be adopted, but not all of it.

Since the MCO was announced several months ago, we have been hearing a lot about the ‘new norm’. The new norm of leaving your home with a bottle of sanitizer in your hand and a face mask on your face. The new norm of taking your temperature before entering any premise. The new norm of no shaking hands. Most of all, we have heard many people talk about the new norm where most companies will now abandon their offices and push for employees to work from home permanently. Why not right?

After all, if no employees are needed in an office, the employer doesn’t need to worry about overheads such as rental and utility bills. Furthermore, the employee too saves money on petrol, toll and parking.

My personal opinion on this matter is that the new norm in this circumstance is not that everyone needs to abandon their offices, instead I believe that flexibility is now compulsory.

Here are my main reasons why I feel that the new norm does not mean everyone PROPERTY360DIGEST

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will work from home permanently.

Hello… is it me you’re looking for?

If you just smiled to the title of the above song, you are that of my generation. That means that you are probably like me. When you need a quick confirmation from a colleague, instead of using zoom (or any other online meeting software), you prefer reaching for the phone. However, more often than not, the person you intended to call didn’t answer the phone. Then, two hours later, he returns your call with the most common excuse. “Sorry bro, I left my phone somewhere and it was on silent mode”. A very convincing lie that you know you aren’t going to fall for. However, you just accept his excuse and move on because you no longer need his opinion. Imagine the situation if you did ask him for his

A phone call gets you right to the point.

It is the most effective means of communication.

opinion on the matter now, two hours later (after already deciding) and he has a valid point why you shouldn’t have proceeded with your action? A little too late to change your course, right?

Well, it would be good if everyone were to maintain speaking over the phone instead of online meeting software.

Ask questions about what you were speaking about in random to random participants. This may work, but it is actually counterproductive.

Distractions, aplenty.

You would think I’m joking but sometimes you may get distracted or distract others with the sounds of your neighbour’s rooster crowing, or your dog barking at the next-door neighbour’s cat. What about the times where your children decide to fight and make so much of noise that it is heard from your work room? The most common situation is the arrival of the delivery guy. ‘Ding Dong’ the doorbell goes off and you rush to pick up your food that is being delivered to your doorstep. You rush back to the Zoom meeting only to have missed what your GM was saying for the past 60 seconds (that’s approximately 150 words). It could have been something important and it would be rude for you to ask him to repeat himself because you needed to excuse yourself.

Let’s look at this from a property point of view. If you are interested in purchasing a property that is priced at half a million ringgit and you inquire the assistance of several real estate agents.

One agent sends you a 3D 360 virtual tour video of the property for you to view while another agent invites you to view the property at the site (of course with proper social distancing measures in place). Instead of walking with you, he drives his car in front of yours and speaks to you over the mobile as you drive around the township, giving you an actual feel of the development and then proceeds to view of the actual show unit from a distance. Who do you think you would prefer to purchase from?

We have to remember the fact that the world has not changed. Norms have not changed. It’s just a situational change and normalisation will kick in as soon as things are no longer as critical as it currently is.

Charles Tan is founder of leading independent property blog kopiandproperty.com which has close to 500,000 visits per year. In 2019, he spoke in 52 public real estate events in Malaysia and Singapore. His views and articles have appeared in major media offline and online.

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Mixed-developments to see unfair charges On May 22, leave to appeal to the Federal Court was rejected and the Court of Appeal’s decision remains intact which means that a joint management body (JMB) is not allowed to apply different rates of charges despite having different components and common facilities given exclusively to a certain component.

By Datuk Chang Kim Loong COLUMNIST

With the said decision, we foresee there will be a large disruptive impact to a mixed development with multiple components, since now every owner is to pay a “single rate” to the JMB regardless of whether you enjoy or have access to the common facilities or not.

This is utterly unfair especially to lowand medium-cost parcel owners who are unable to enjoy or have access to the facilities used by the high-end owners in cases where there is one with the same characteristics, the costs of maintaining such common areas single JMB on a mixed development. could still vary.

A strata owner should only pay for what This is because certain common he is entitled to use property including facilities in such We at the National House Buyers mixed-use strata development may Association (HBA) are steadfast and not be shared in use equally by the unwavering in our views that there components in a strata development should be variable rates for mixed (that is: there is exclusivity of use of certain designated parts of the development schemes. common property to only one or Mixed developments involve issues more components but not all the extending beyond the mere use of components). parcels and the factors enumerated in the formula contained in the First Furthermore, the Court of Appeal’s Schedule of the Strata Management decision fails to appreciate the differences between en bloc parcel Act 2013 (SMA 2013). (a block with a single strata title) and There are situations where even multiple parcels (a block with multiple between parcels of the same use and strata titles).

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For example, an en bloc office parcel block could have little or no common area at all within its own block and it may be unfair to require the en bloc parcel block owners to foot the bill for maintaining the common facilities located in residential towers, such as swimming pool and gym.

How will JMBs be affected with this ruling?

The case in the limelight at the Court of Appeal is Menara Rajawali: a standalone mixed-use strata scheme in a single building block where facilities are shared in common by all parcels in the strata development. Hence, A point to note is that the apartments the uniform flat rate of maintenance and offices shared the same weight in charges applies fairly and reasonably computing share units. well to all the parcels based on their allocated share units.

Above all, the overriding principle in determining maintenance charges shall Generally, mixed-use strata schemes be that an owner only pays for what he are very diverse in nature with regard to is entitled to use and vice versa. their development sizes, components mix, numbers of building blocks and The allowance of different rates during large en bloc parcel blocks. management by the JMB will provide for flexibility, and of course, safeguards For the large and diverse mixedmust be put in place to ensure that this use strata schemes where highmechanism is not being abused. maintenance common facilities are exclusive to certain component or The rates of maintenance charges must components only, the uniform flat rate be sanctioned by general meetings, of maintenance charges cannot be and preferably with the passing of applied as it will be unfair to the other special resolutions. components which do not enjoy such common facilities. This may be further When the SMA 2013 allows for the complicated by large en bloc block imposition of different rates of parcels in the mixed-use strata scheme. maintenance charges for developments The allocated share units generated by managed by the management the standard share unit formula in the corporation (MC), the same shall be First Schedule of the SMA 2013 or the applicable to developments managed Fourth Schedule of the Strata Titles by the JMB unless there are valid Rules, as the case may be, will not be justifications not to do so. able to provide for a fair and reasonable uniform flat rate of maintenance charges After all, the JMB is merely the precursor in such cases. of the MC and will be succeeded by the MC once the strata titles are issued.

Some of the JMBs in such large and diverse mixed-use schemes have The spirit of the law is to have a smooth passed “special resolution� under transition from the JMB stage to the MC Section 32 of SMA 2013 in conjunction stage and not to create confusion and with the statutory by-law 4 of Strata dire ramifications.

Management Regulations 2015 (SMR) to PROPERTY360DIGEST

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grant exclusive use of designated parts of the common property to a particular component and thereby restricting such use from other components.

Thus, such JMBs, in our humble opinion, should be allowed to continue with their different rates of maintenance charges that have been approved at the AGM/EGM as fair and reasonable maintenance charges to the different components based on an approved rational operating budget. But, we stand corrected with other differing views.

Perhaps other JMBs of large diverse and complicated mixed-use strata schemes may want to emulate the abovementioned JMBs in their pragmatic approach to seek maintenance charges that are rational, fair and reasonable to their diverse components. However, they (JMBs) should seek independent legal advice prior to such undertaking.

Legislation intervention needed It is pertinent to note that Section 60 of SMA 2013 allows different rates of maintenance charges for the MCs of mixed-use strata schemes.

KPKT and JKPTG have to quickly look into amending SMA 2013 and the Strata Titles Act to resolve the present dilemma of such large diverse and complicated mixed-use strata schemes, to offer clarity and in no uncertainty.

The minister may have to pass a new set of SMR to even differentiate between “residential” and “commercial” areas.

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Real examples of the current dilemma: (1) Mixed-use strata scheme comprising high-rise condominium blocks with low- and medium-cost flats.

(2) Mixed-use strata scheme comprising high-rise condominium blocks with exclusive facilities and land parcels of linked terrace houses without facilities.

(3) Mixed-use strata scheme comprising retail mall, hotel, office, apartments and en bloc retail car park parcels.

(4) Mixed-use strata scheme comprising high-rise towers of multiple office parcels, en bloc retail mall podium and en bloc three-storey shop parcels fronting access road.

(5) Mixed-use strata scheme comprising high-rise block of office parcels and en bloc block of hotel.

Datuk Chang Kim Loong is the honorary Secretary-General of the National House Buyers Association (HBA), a non-government and not-for-profit organisation wholly manned by volunteers.

An investment transformation by FEATURED REVIEW Platinum Victory DEVELOPER OF THE MONTH

Vista Sentul Residences brings modern living without the hustle and bustle

By Gunaprasath Bupalan

Off with the OLD, on with the NEW If we were to speak about Sentul some fifteen years ago, we would immediately assume the stigma of underdevelopment as the township was initially set up to mainly house the workers of Sentul Works - the finest integrated engineering railway workshops in Malaya — Sentul Works, back in the late 18 hundreds.

Platinum Victory’s Vista Sentul Residences sits on 2.38 acres of this freehold land in Sentul.

The project has been padded up with an array of facilities for the modern-day resident.

It took almost two decades before developers started to see the significance of the land as a connection gateway to other upcoming areas such as Segambut, Gombak, Setapak, thus making Sentul a prime housing area for all walks of life. With its proximity to Kuala Lumpur City Centre, it has today become a mixed-community of lifestyle upgraders commuting effortlessly to the city centre and other areas to work – a 360-degree transformation from what it used to be; the once unnoticed location has now become a sought after and highly desired address.

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Many have now chosen Sentul as their place to call home as the commute to the city centre is almost effortless.

The once ‘worker-filled’ communities have now been transformed to a more professional community that houses more white-collar corporate individuals, families and a community of lawyers as Sentul is near the courts in Jalan Duta.

Sentul has over the years matured and garnered an array of amenities and conveniences for its residents that are just a stone’s throw away from most of the residential communities. Many educational facilities include primary, secondary as well as tertiary education to meet the needs and wants of the evergrowing township. This also includes entertainment and retail conveniences.

Today, Sentul stands tall as an adored address, housing a community of residents from a broad walk of life including the higher accolade of society.

Connecting the dots As the timing is now perfect with the growth and maturity of Sentul, Platinum Victory (PV) has embarked into developing a residential high suite project called Vista Sentul Residences on 2.38 acres of this freehold land. This double block strata development will house a total of 705 units in 45 and 32 floors respectively.

the project could be ideal for students who need an easy commute to the city centre, start-up families that desire a good environment to begin their family or even mature families that are looking for a great place to bring up their little children.

The uniqueness of this development lies in the availability (or in better words, the flexibility) of space. Each unit will feature comfortable open-concept living and dining areas to make it easier for residents to furnish these units based on their creative ideas. Some may prefer a bigger space to relax while enjoying a movie in the living room while others may prefer a bigger dining area to host friends over for dinners. Whichever it is, it is possible with this adaptable layout.

Vista Sentul Residences has also been padded up with an array of facilities for the modern-day resident. Residents will be able to enjoy a fully-equipped gymnasium for individual or group workout sessions as well as a Yoga Room for a subtler and more peaceful workout routine. This means that you may no longer need that gym membership to commercial gyms that make you spend more time behind the wheel of your car rather than burning those calories.

This new project by PV is not just unique, but desirable. Units at Vista Sentul Residences come in eight different spacious layout types that range between 689sq ft to 1,216sq ft, with a choice of either two bedrooms Vista Sentul Residences comes with a or three bedrooms. This means that swimming pool, an infinity pool, a sun deck, a landscaped garden as well as a BBQ area.

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Everything needed at your fingertips Having said all that, residents at Vista Sentul Residences could get their daily necessities at Ong Tai Kim Supermarket or the UTC Sentul, located just a stone’s throw away from the development. For residents with ageing parents or young kids, they can rest assured of medical services as there are several medical Residents would be treated to a fully-equipped gymnasium for individual or group workout sessions as facilities such as Sentul Medical Centre, well as a Yoga Room for a subtler and more peaceful KPJ Tawakal Jln Pahang and Hospital workout routine.

KL within three kilometres from the For those who are seeking a more development. relaxed and tranquil lifestyle, Vista Sentul Residences doesn’t just come Those with school-going kids need with a swimming pool, instead, it not worry too as there is an array of comes with an infinity pool, a sun deck, educational facilities just around the a landscaped garden as well as a BBQ corner. This includes the Chong Hwa Independent High School, SK Sentul area.

2, St Joseph Tamil Primary School, Chi Adding to the already impressive list Man Chinese Primary School, SJK(C) Lai of facilities, there is also an ‘Adult Chee, SJK(C) Sentul KL, SRJK(C)Chong Playscape’. For families with young Hwa, SK Kampung Batu, SK Delima, children, on the other hand, an escapade Convent Sentul Secondary School, SMK at the kids playground, the sand pit, La Salle Sentul, SMK (Perempuan) Jalan the wading pool, AV room or even at Ipoh, SMJK Chong Hwa as well as the the Games Room, would keep young Wesley Methodist School Kuala Lumpur (International). kiddos entertained for hours.

However, the most interesting amongst the lot is the Chill-Out Lounge and Library. These unique facilities are not a norm in many high-rise residential developments, though personally, we feel it should be a necessity. Sometimes you just want to escape to a place you could get some quiet ‘me’ time and a Chill-Out lounge would do the trick.

A library is just a no brainer – a place filled with books that you can immerse in for hours and hours of an escape into the world of imagination, who doesn’t need that?

For those seeking recreation activities outside the vicinity of the development, should not fret. Close to the development are recreational and retail facilities such as Sentul Park, KLPAC, Taman Tasik Titiwangsa, Istana Budaya, Balau Seni, SOGO, KLCC, Pavillion, KL Sentral as well as Publika.

Connectivity is the cornerstone to strategic living Have you ever had an urge to go to a shopping mall or an entertainment PROPERTY360DIGEST

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outlet for the day but got put off due to the long distance that you would have to endure to get to your destination?

The truth is, most people do when there is no good connectivity between their home and highways or to public transportation.

PV was blessed as the land gazetted for the project is strategically located with easily accessible via an array of highways that include Jalan Sentul, Lebuhraya Duta – Ulu Kelang (DUKE), Lebuhraya Setiawangsa – Pantai (DUKE 3 – SPE) as well as alternative routes through the slip road of Jalan Sentul via arterial roads with the likes of Jalan Tun Razak, Jalan Ipoh, Jalan Pahang, Jalan Kuching and Jalan Kepong. The development is also close to public transportation hubs such as the Sentul KL LRT station, KTM Sentul station and the proposed MRT Sentul West station that is expected to be completed by 2022).

According to the developer, there will be an announcement towards the third quarter of 2020 regarding the launching date and the project is expected to be completed by the third quarter of 2023.

This low-density project is expected to be like an otter seizing a fish as we believe that Vista Sentul Residences would be a great place for homebuyers to invest in if you are looking for a lifestyle upgrade – an abode away from the hustle and bustle of the city, yet just a stone’s throw away from all lifestyle conveniences needed in modern society.

Vista Sentul Residences is not just unique, its ultimately desirable.

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FACT BOX Developer: Constant Premium Sdn Bhd (Platinum Victory) Development Type: Residential Apartment Suites Development Size: 2.38 acres Land Type: Freehold Unit Size: From 689 sq ft to 1,216 sq ft No of blocks: 2 blocks No of floors: 32 + 45 floors No of units: 705 units Maintenance charges: RM0.35 per square foot Facilities: Gymnasium Yoga Room Infinity Pool Pool Deck Yoga Deck Sun Deck Wading Pool Kids Playground Sand Pit Children Play Room Games Room Chill Out Lounge AV Room Library Landscape Garden Selling Price: From RM329,800 onwards Contact: Phone: 0111 722 5565 Email: vistasenutlsales@platinumvictory.com Website: https://www.platinumvictory.com/ development/vista-sentul/

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REVIEW

A Home with a Twist

By Gunaprasath Bupalan

The jewel of SS19 is now on the market When it comes to property purchase, one needs to look into two major aspects.

Are you purchasing the said property for own-stay or for investment? Both aspects have different characteristics and influences respectively. In this article I would like to share a particular property that I recently stumbled upon that seems to be ideal for investment.

So, read on as I will walk you through a secondary property that has recently become available for purchase, ultimately for the creative purchaser in mind, with a nifty twist to even cater for own-stay buyers.

Strategy isn’t just gameplay, it is to find the correct location In both aspects of property purchase, may it be for own-stay or investment, the common denominator that needs to be considered is its location. I would say that the first rule to investing in property would be to get the location right.

created back in the eighties when the then Sultan Aziz Shah International airport connected the Central Business District (CBD), Kuala Lumpur and the international water trade of import and export that was happening in Port Klang.

From then till now, Subang Jaya has evolved immensely and achieved a matured township status where it houses residents from all walks of life, international educational facilities, beautiful housing enclaves as well as international business facilities.

Being just 20 minutes away from Kuala Lumpur City Centre and only 30 minutes away from Kuala Lumpur International Airport also brings its unique perks to residents of Subang Jaya. This strategic location makes commuting to and from work to the city centre or even the south (Sememban) easy and convenient.

Within this exclusive township is a housing estate called SS19. To many Subangeits, SS19 is like the Beverly Hills of Subang Jaya – an area where mainly the rich live. It is actually a beautiful housing area with bungalows and villas atop the hilly terrains and tastefully designed terraces complement them.

The view of SS19 from the Federal Highway as you enter Subang Jaya is simply breathtaking and would capture anyone’s attention immediately.

The mature Subang Jaya township was SS19 was actually completed back in one of the first to take advantage of 1986, making it one of the oldest and the original golden triangle that was largest mixed-developments within PROPERTY360DIGEST

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Subang Jaya. At the moment, homes Impressive, not just an impression here are being sold at an average of RM1,300 to RM1,500 per square foot.

At the moment, the main entrance has been closed as it is more feasible for teachers to receive students into the building from the side entrance instead.

But if you look at the illustrations below, you would be able to picture the long porch at the entrance.

The property that we are highlighting in this article sits on Jalan SS 19/5f and it is house number 42. Currently being used as an exclusive kindergarten, owners Adzli and Jelita who currently reside at GoldCoast, Australia have tastefully designed the unit. Utmost thought was put into the design of the unit so that it could easily accommodate groups of children, an age-care facility or even unfolded back into a gorgeous, huge home for a family. This would make it a lot easier for a future owner in the event that they sell the unit along the way.

These renovation works cost the couple approximately RM300,000 some 10 to 15 years ago.

This is a feature that all homes in this neighbourhood share. The long porch serves the purpose of parking three cars back to back. In the case of this particular house, part of the garden (seen next to the porch) has also been converted to accommodate a play area for the kids. This area is big enough to park two more cars, hence you could park five cars at the porch‌impressed yet?

Walking past the play area would lead you to a 5-foot-wide garden that currently houses the pet of the kindergarten (Iggy the Iguana). Upon purchase, you will inherit the garden area but not Iggy.

The house that sits on approximately 4,000sq ft of land area had an original built-up of 1,423 sq ft, but now hosts 3,700sq ft of liveable space. When I walked into the house, I was astonished by its size. It felt like I was walking through a mansion, even though it was just an end lot terrace home.

The Sunny Outdoors This area could either be maintained as a garden where you could include a coffee table for those romantic evening chit-chats or pave it up to add on to the already impressive porch area.

UNITY is the root to any COMMUNITY.

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What is that standing tall between the play area and the five-foot-wide garden? Yes, it is a fire escape staircase that leads upstairs to a room at the first floor. We shall delve into this room later in this article but for now, let’s digest the staircase.

This staircase that leads to a room on its own can either be maintained as a fire escape or you could convert it into a home within a home (a dual-key concept home).

By doing so, the loft upstairs could be given to a member of the family for more privacy or it could also be rented out without having to interfere with your family’s day to day routine.

Space is to be used Smartly

If you walk along the five-foot way garden at the side of the house, you will be led to the side entrance that initially used to be part of the garden too. Now, it has been tiled up to accommodate a landing area to receive the kids arriving at school. This landing area also opens up to a bigger space further down, where the administration office (initially maid’s room) is on the left. Believe you me, in today’s world, this is a smart move as many homes need more ‘indoor’ space to be converted into a gym, yoga area, children’s play area or even to be used as a utility area to dry clothes.

Every woman’s dream kitchen space (and some men too) Walking through this area would then lead you to the extended kitchen at the back. Do note that the initial layout PROPERTY360DIGEST

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of the home only housed a very small standard kitchen but now, with the tasteful renovation that has been done, the kitchen extends to most of the backyard so hosting parties or cooking for groups wouldn’t be much of an issue. Also, for those who have always dreamt of owning a home with a Master Chef kitchen, here, you have the space for that.

I know what you are thinking at this point. If the built up is extended all the way to the back, does that mean that one foot out is the back lane? Actually, it doesn’t. As mentioned earlier, the owners were very creative with their renovation. Instead of extending all the way to the back, they left about 10 feet of garden area that can be maintained to host to a variety of plants and flowers

(if you are into stuff like that), or it could The dining also be paved for other usage, or if you dilemma…solved need an even bigger kitchen, guess what? You have the flexibility to do so! The room opens up on the other end of Space is an living space asset the hall to a split level that leads you up into the photocopy area (initially the dining area). Honestly, the original size of the dining area which leads to the original kitchen is not very impressive. For a home with so much potential, I’m rather surprised that the developer didn’t utilize the space they had to work with. However, Jelita The ever so impressive ‘outside’ is and Adzli did. Instead of the dining absolutely complemented with the area being at this spot, you can easily even more impressive inside. After move the dining table further back into renovating, and sacrificing the garden the extra kitchen space and leave this area, this couple were able to achieve photocopy area to be another landing a much bigger living area internally. area that hosts a variety of photographs The visual of the hall will give you a or posters on the walls. It would be a better understanding. What you see sight for sore eyes when you have is basically built-up, and wasn’t there visitors. originally. By adding on to the originally small hall, it has made the living area so Next to the photocopy machine, you sizeable that you could actually divide will see another door which leads to the the hall into two – a television hall as administration office we spoke about well as a guest hall. Just a thought earlier. It is also a sizeable room that could accommodate another couple At the hall, your eyes would be taken to or be converted into a maid’s room, a two doors along the wall. The first door game room, a home gym, a study or a is the original entrance into the house home office. (which has been closed and blocked by shelves at the moment) and parallel to that door is another door that leads into a hidden room. Originally, this was part of the porch area. Instead of a long porch, Jelita decided that an additional room here would serve more purpose.

This room is large enough to fit a queen size bed, a cupboard and even a working table. Perfect for an elderly couple to live in.

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A Throne for the ground floor King In between this room and the kitchen, there is the original Ground Floor washroom. As any standard home, the washroom was very small but the couple decided to extend it to five times its original size (to accommodate more stalls for the little ones) with mini toilet bowls too. It’s so cute! However, if you are not into cute things, it could be destroyed and remodeled into a huge wet and dry designer bathroom if you may.

Going upstairs, as you step up the double staircase, you will be met by a landing area that could host a reading chair and downlight for those nights that require peace and harmony.

The first-floor suites

To the right of the landing area is a huge room with a bathroom. No, this isn’t the master bedroom. Instead, this was originally two rooms that have been renovated into one.

You could maintain it as a huge guest room or pass it to one lucky family member as a suite or convert it back the original layout, instead, it was built. into two rooms (if you need more rooms The room could easily host a single than the house already has now). bed, a wardrobe and a study table with utmost ease. Furthermore, it has a To the left of the landing area is a smaller window that faces the main entrance. stand-alone room. This room wasn’t in Perfect for a study or a home office.

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The Master Bedroom is now a Master Suite

Adjacent to this room is the Master Bedroom (or if you ask me, a whole designer suite by itself). Entering this room, you would realise that the original layout was just a small box with an attached bathroom. However, now with the tasteful renovation that has been done, there are two attachments to the Master Bedroom, both in bigger sizes compared to the original.

Designed in such a way that the entrance to the room, and the new room attached to it could be made into walk in wardrobes or a sitting lounge while the bed could be set up in the huge additionally built up area that supersedes sizes of a lot of modern-day studio suites.

Remember earlier I mentioned the fire exit staircase? Well, that leads straight to this room. So, for those who are thinking of renting this space out, you could always seal up this room from the original Master Bedroom and leave it as a standalone suite. But if it was me, I would maintain it as part of my Master Bedroom and call it the Master Suite.

The whole Master Bedroom is easily 1,000 sq ft at the moment!

Up, up and away we go to the hidden second floor Well, you may think that is all right? You are mistaken. There is actually a second staircase that leads you up to the second floor (second halffloor to be precise). There are two more rooms atop the house at the attic area.

Both rooms are equally large where they could accommodate a single bed, wardrobe and a study table each. The only problem is that it is a little hot up there as there is no ventilation. Not to fret, just by insulating the floor, this hurdle can be crossed and it would lead you to having an additional two rooms that your older two offspring would really appreciate.

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It’s time to move on So, the big question most of you will be asking is why sell a house like this? Well, the honest truth is that the kindergarten that is occupying the property at the moment is moving venue and this unit will be left vacant come end of 2020.

According to Jelita, they would rather sell it to an investor who would appreciate the intense creativity and thought process that have been put into renovating the house. It is no ordinary house that is for sale. This house may as well be one of the biggest houses in the area (built up wise) and can be converted to host an array of needs.

An investor who is looking at hosting a wellness centre or a home for the elderly. The renovation works and the extra space that has been added to the original layout make this home an ideal retreat for the elderly. The many rooms it already has now coupled with the available convertible space would be perfect for this notion.

An investor who is looking at starting up another kindergarten. Well, needless to say, most if not all the ground work has already been laid out for you (including mini toilets!). It’s a pack your bags and move in kind of situation – pack your books and…you get the idea.

Who would this house appeal to?

Basically, anyone who is looking at a good home in a good neighbourhood to raise their children.

Even though the house is a kindergarten at the moment, it could easily be converted back into a home (that was the original thought process of Jelita and Adzli) with ease and at minimal cost.

For more information on more accurate figures and sale calculations, please contact Juliana Teh at +6 016 331 8080 (REN 06375). Juliana has vowed to negotiate the best she can with the owners and give you the best deal possible.

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A Holistic view on the secondary property market

WORLD WATCH

Compiled and edited by John Tyler Knight Frank Malaysia Residential Agency suggests solutions to this issue Various incentives have been announced for the purchase of properties at the primary market, but not so for the purchase of properties at the secondary market. This story is looking at the challenges the secondary market is facing and what can be done to solve these challenges. Who better to consult about this matter than the ever-reliable Knight Frank. Here are the insights gathered from Knight Frank Malaysia Residential Agency:

The Home Ownership Campaign (HOC), which ended 31 December 2019, has been revived under the country’s recently announced RM35 billion Short-Term Economic Recovery Plan (PENJANA). Effective 1 June 2020 till 31 May 2021, stamp duty exemptions will be provided on the instruments of transfer and loan agreement for the purchase of residential units priced between RM300,000 and RM2.5 million and limited to the first RM1 million of the home purchase price.

Looking at the house buying trend in Malaysia, are there more people In addition, the 70% margin of financing buying from the primary or the limit applicable to housing loan for the third property, will be uplifted during secondary market? Why?

the period of HOC, subject the financial We are unable to access data on the institution’s risk assessment. composition of primary / secondary These incentives under the revived transactions.

HOC, indeed, are focused on the In the Klang Valley, where are the primary market. popular areas for the secondary In terms of the secondary market, the initiative is in the form of RPGT market? Why? exemption for disposal of residential property (limited to three properties Refer to Question 7 for general per individual) from 1 June 2020 to 31 commentary.

December 2021. By reducing the cost of property disposal, this incentive will Most incentives announced are for encourage motivated vendors to sell the primary market. What incentives / provide savings to vendors affected do you think should be given for by the Covid-19 pandemic who need to the purchase of properties at the liquidate their assets.

secondary market?

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The exemption of stamp duty beyond the HOC / reduction of stamp duty rates may further spur activity in the secondary property. Unlike the RPGT exemption which benefit the seller / vendor, stamp duty exemption / reduction in stamp duty rates may motivate potential buyers as it reduces the cost of property acquisition.

Historical transactions only provide a guide to both vendor and purchaser.

Many factors determine the value of a property including location / orientation, building layout, land size / built-up areas, level of maintenance, improvements, etc. Negative factors that may affect property values include proximity to sewerage pond / TNB substation / cemetery, T-junction, floodWhat are the challenges for people to prone area, etc. buy at the secondary market? What are the solutions to these challenges?

Both vendor and purchase may engage Challenges when purchasing properties an independent professional Valuer to in the secondary market include determine the property value. difficulty in obtaining loan approval / loan amount (the difference between To help overcome the challenges, down payment and the balance property innovative financing packages from price), mismatch in price expectation financial institutions support home between vendor and purchaser, etc. buyers – especially for first-time homebuyers, often these people are Securing loan has been one of the major younger and have just started work challenges when purchasing property and therefore may have less savings / in the primary or secondary market. reserves for down payment etc.

The loan approved to loan applied ratio for the purchase of residential property Innovative financing should take has been on the downtrend since 2015; into account their potential career hovering between 41.3% and 48.4%. progressions – moving forward, with During the first four- month of 2020, higher salaries these borrowers will the loan approved to applied ratio fell be able to afford higher monthly below 40% mark to record at 38.3%. instalments. For example, a step-up instalment plan.

Another challenge is the mismatch in price expectation between vendor and Hefty down payment for the purchase purchaser. Purchasers may compare of properties at the secondary market the current asking prices to historical can deter buyers from entering the transactions within the locality while secondary market. Any suggestion/ vendors may expect higher selling advice on the agreements sellers and prices attributed to investments made buyers can make pertaining to the down to improve the properties (renovations payment?

– built-ins, fittings, extensions etc.) / capital appreciation. No two properties • Down payment may be one of the are alike, and therefore, there is no issues faced by potential homebuyers. apple to apple comparison.

They should be able to obtain a pre-loan assessment prior to making the deposit payment. Pre-loan PROPERTY360DIGEST

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assessment helps potential homebuyers to assess their loan amount eligibility and set the budget for property hunting process (and purchase).

• Homebuyers may also finance the purchase of property or down payment by withdrawing from their KWSP/ EFP fund - Account 2. Many homebuyers are not aware that they are allowed to withdraw from their KWSP/ EPF fund or do not know the withdrawal process.

• Vendor and purchaser may pre-agreed on deferring the down payment and/ or the vacant possession date.

• Propose for longer completion period with early vacant possession but subject to nominal rental.

• Rent first with a commitment to buy at a later date (with or without a preagreed price) What are the advantages of buying properties at the secondary market?

What is your advice for people who are looking to buy in the secondary market now?

Advantages

• Unlike in the primary market where properties are usually sold off-plan through property show galleries or virtual tours, potential buyers in the secondary market property can inspect the actual property product and have a feel of the immediate neighbourhood and surrounding environment. For stratified properties such as condominiums and serviced apartments, potential buyers can visualise the quality of facilities offered as well as the general level of building maintenance and services.

• In the primary market, properties are generally launched pre / during construction stage and thus, buyers are required to wait for construction completion before delivery of vacant

possession. The construction period can take up to 24 months for landed properties and 36 months and above for high-rise stratified units. As for the secondary market, delivery of vacant possession is much faster – within a few months as it generally relates to completed existing properties.

• For investors, these are ready properties that can offer immediate rental returns. Opportunities • Post-MCO, there are opportunities for potential buyers to obtain a good deal as there may be more motivated sellers.

The RPGT exemption for disposal of residential homes from 1st June 2020 to 31st December 2021 (limited to three properties per individual) may see more owners / investors looking to liquidate their assets during this window period.

And with lower disposal cost, vendors may also be more flexible in negotiating sales terms and pricing, etc.

• The central bank’s revision of the Overnight Policy Rate (OPR) by 25-basis points to 2.00% on 7 May 2020, the third revision this year amid challenges in market conditions that are further impacted by the Coronavirus (COVID-19) outbreak, has led to banks and financial institutions lowering their rates. Moving forward, homebuyers may secure loans at lower interest rates and this provides savings in their monthly repayments.

• However, potential buyers should also have clear objectives on their desired properties: the purpose of purchase (own occupation, rental income / investment or capital appreciation, etc.); location preference; property type, etc. Buyers may obtain a preapproved loan prior to property hunting to help them in setting their budget.

With clear objectives, the property hunting process will be more efficient and effective.

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We all know that amidst the excitement pf purchasing a new home, it could get a little daunting for the purchaser (especially first-time-homebuyers. Fret not, we have you covered. Here is an essential checklist that would help you prior to your engagement.

Age isn’t just a number in this scenario.

Facilities are important

Municipals are ready to help

How old is the property? Has it been built recently or has it been in existence for quite some many years now? You need to be aware that the older a facility gets, the more repairs and refurbishing it would need. Repainting may not cost much but fixing piping issues and What is the physical condition of the electrical systems can be quite costly.

So, consider its age before proposing property?

Is it in a good, habitable condition or is for marriage! it nearly falling apart? If so, how much would you estimate you would need to Has the property been able to attract repair it before renovations? Is it worth a lot of occupants for the past few the price now? years?

Does it have a lot of occupants at the What surrounds the property? moment or is it abandoned? To be able Is the located a place which shows to know this, you should do your own good potential for improvement over ocular inspection. You can simply pass the years or is it a place that is gradually by the property at hours when most being abandoned due to the worsening people will be at home. This way, you conditions surrounding the area? If can see for yourself if there are more so, you need to come to terms and lights on or more black holes. You understand that it may not appeal to may also get the chance to observe prospective occupants and you may the type of people that live within the experience losses from it. development.

What facilities does your unit come with?

Are there good amenities surrounding the development, as this will serve to attract good tenants. These are factors that could make or break your real estate rental business.

You should also drop by the respective town council / municipal to check if there are any planned changes in the area such as additional roads, other buildings, retail outlets, and other items that could influence your ability to rent at a higher rate in time to come.

Is the property partially or fully furnished or does it not contain any Check your finances It is good for you to note that most furnishings at all?

Furnishings help increase the rental income that you can get from the property. If renting out, however – you may not want to invest in really expensive furniture (tenants will not be held liable if its damaged in most cases) PROPERTY360DIGEST

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banks in Malaysia have a DSR cap of 6570%, so it is crucial that you calculate your repayment ability for your target home before making the next move.

The last thing you want to be doing is to utilise your entire salary for housing expenses.

REVIEW

Blooming Up North

By Gunaprasath Bupalan

Mah Sing’s M Aruna set to lead the way in Rawang

A Grand Entrance Statement boasts a unique and welcoming ambiance

Based on research and analysis, it has been proven that Rawang is one of the hottest developments in Northern KL and it will transform into a thriving township like Petaling Jaya in the not so distant future. There is already much indication of this transformation as many people have been moving away from the city to avoid the hustle and bustle and wanting to enjoy the therapeutic benefit that nature has to offer. Rawang seems like the best solution to this agenda.

With the official opening of the KLKuala Selangor Expressway (LATAR Expressway) back in 2011, linking Kuala Lumpur with the township of Ijok, created an alternative link road that shortened the travel distance between Kuala Lumpur and Rawang, making it more feasible for Rawang residents to travel to the CBD for work and other matters.

The splendor of a garden and the peace and harmony of nature. These are the elements that buyers of M Aruna Rawang would enjoy.

A project by Mah Sing Group.

M Aruna is to be built along 96.71 acres of land that is only three kilometers from Aeon Rawang with a Gross Development Value (GDV) of RM520 million. The township of M Aruna will be developed with a ‘Secret Garden’ concept with a green sanctuary to promote sustainability within the township.

This well-planned township was designed with unique landscape features that emphasizes on green and open space facilities that promote a healthy family living environment.

The two-acre Linear Park, a fairy tale thematic landscape home to a treehouse, hammocks, jogging track, bike challenging park and a half basketball court makes M Aruna the perfect place to leisurely unwind for both the young and the elderly.

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According to the developer, this lowdensity development has a potential for easier capital growth increase compared to other higher-density developments around. With the easy access to Kuala Lumpur CBD and amenities such as medical facilities, educational institutions, recreational landmarks, retail outlets and many others that are just a stone’s throw To ensure that peace of mind, the two- away, we believe that the developer storey link homes (20’x60’, 20’x75’) and has a point with their claims for good well as the Townhouses (1,000sf) within capital appreciation. the M Aruna development are guarded with 24 hours patrolling security. The For those who are interested, Mah Sing development also comes with a grand Group has opened pre-sale now and will entrance statement that welcomes launch Phase 2, Carya in August 2020.

As units are limited due to positive residents with a lush green driveway. demand, it would be advisable to get in touch with Mah Sing Group immediately.

Carya, Phase 2 will be launched soon.

From the moment you drive into M Aruna, you will be welcomed by a lush, Zen resort feel – a paradise dream home. In total, 7.32-acres of this landed project has been dedicated to green pockets, the two-acre linear themed park as well as another three-acre recreation to ensure the serenity at M Aruna is enjoyed by all its residents.

For further information, please contact Mah Sing Group at 603 9212 8318 or visit www.m-aruna.com.my PROPERTY360DIGEST

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A 360 take on the PENJANA

By Gunaprasath Bupalan (an interview with Datuk Chang Kim Loong) The government recently announced three specific measures to reactivate the property industry in the Penjana economic recovery plan (Plan Jana Semula Ekonomi Negara). We examined these goodies and came up with the conclusion that at face value, it is a good plan to revive the economy but is it actually well planned?

To get to the bottom of this, we decided to have a chat with Datuk Chang Kim Loong, the honorary secretarygeneral of the National House Buyers Association, a non-governmental, notfor-profit organisation wholly manned by volunteers. We wanted honest and unbiassed feedback and reckoned he was the best person to give us what we wanted to hear, so that our readers (you) could decide for yourself.

help Malaysians own homes. Based on the HOC, there were some waivers and discounts that participating developers needed to abide to, for the benefit of homebuyers.

With the Penjana, it was announced that the HOC will be revived once again to aid homebuyers during these troubled times. How true is this?

Chang:

The Home Ownership Campaign (HOC) is presumably to enable house buyers to own a house or residential unit. The incentive given by the government under the Penjana economic recovery plan is a waiver in the stamp duty for residential units priced between RM300,000 to RM2.5 mil but capped at RM1 mil. Nice? Well, this is what Datuk These are basically his thoughts on the Chang had to say. matter.

The real reason why most developers Are we going ‘overboard’ to peddle were and are not able to sell their unsold high-end properties with stamp houses is the pricing”, said Datuk Chang duties waivers?

Kim Loon. He added that it is still very difficult to understand why taxpayers’ money is being “sacrificed” to facilitate the niche market buyers and for the benefit of the housing developers.

And that is exactly what is being done here. How else do you explain the fact that the government is waiving We saw an initiative last year by the stamp duties for the transaction? government called the Home Ownership Less collection of such fees means Campaign (HOC) that was launched to government expenditure is being paid from other tax sources.

(Would the HOC benefit the Rakyat?)

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Why should the rest of the country subsidise these developers’ marketing of their product? They made a bad business decision and the rest of us have to subsidise their loss? Why don’t these developers just give a “higher” percentage of discount on these properties? It’s elementary economic that when a product can’t sell, you sell it cheaper in a soft market, especially so in these Covid-19 times.

This HOC move is obviously to assist housing developers to “dispose of” their unsold stock that has been statistically categorised as “unsold overhang” properties. The real reason why most developers were and are not able to sell their houses is the pricing. It is not an unknown fact that even without HOC, developers are known to have given discounts and rebates, sometimes as much as 25%. Advertisements of 20% to 30% have been sighted and There is no difference between a acknowledged by market players. property of RM1 mil with the stamp duties (tax) of RM24,000 waived by the If with all these rebates that were given, government and a developer selling developers find it difficult to sell their the property at RM976,000 and the houses, it comes as a surprise that the purchaser paying the RM24,000 stamp government has come out partnering fee to the government. The adage in the HOC again and at a mere 10% “privatising profits and socialising discount. Will this move help or will it losses” is most apt to describe the work? situation.

It is really not difficult to understand The root of the problem remains why developers pitch such steep prices and only to give discounts, rebates to be pricing and other freebies. If they cannot sell it in normal times, it is difficult to understand how they can sell under the HOC, unless the new 10% that the government has mentioned is after the “various” discounts that they would normally give.

(So what is the actual problem?)

The crux of the matter for decades now has been pricing when it comes to home purchase. Yes, it is applaudable that the HOC would directly offer a 10% discount to buyers. This would drop the price for home purchase, but would the drop be significantly enough to achive this task?

Chang: PROPERTY360DIGEST

Transparency in price discovery is lacking. The financial institutions seem to be aware of the discounts and rebates, but how these have been translated into loans is not known. The government ought to let the market play its role with the banking sector sticking to the real prices. Greater accountability must be enforced on developers to account for selling prices, discounts and rebates.

The act of increasing the price and then offering a rebate appears to help the

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buyers but this actually does more harm than good in the long run. These rebates, discounts and “cashback” actually lead to higher cost for the buyers.

Zero-rated RPGT over-rated?

(So is it time to sell?)

To those who are not aware, Real Property Gains Tax (RPGT) is a tax levied by the Inland Revenue Board (IRB) on chargeable gains derived from the disposal of real property. This tax is provided for in the Real Property Gains Tax Act 1976 (Act 169). Basically, if you want to sell your property, you need to pay tax. The Penjana’s second measure is to remove RPGT for 3 properties that an individual owns, so that it could be disposed without worry. Is this really a positive move?

Chang: The second measure is to reduce the RPGT to zero rates and applicable between the period of June 1, 2020 to Dec 31, 2021. Individuals are allowed to enjoy this RPGT for three properties.

If this measure is to allow individuals to realise their gains and increase consumer spending, then it is not well thought out. RPGT is a move towards containing inflation and speculation. If prices shoot through the roof, as they would, there will be calls for bringing back the 30% tax bracket.

Such volatile changes in the tax system will not help the economy. What is needed is a sustainable RPGT. With the removal of RPGT, the property turnover rate may artificially be increased to enjoy the gains made, and it will help “hot money” to surface. Bank Negara has to be vigilant in monitoring the sources of the money moving into the property.

Should this cap of 70% actually be taken off?

(Lifting the cap could be detrimental?)

It was announced last year that Bank Negara Malaysia will be setting a cap on housing loan margins. Basically, if you were applying for a housing loan for a third property or more, you would only be given a maximum of 70% loan. This was a move to rid speculators in a time where property prices were increasing drastically. It was a smart move to cool down the market. With the Penjana, this cap has been lifted. What are the consequences we may see from this sort of move?

Chang: How this measure will help the property market is difficult to comprehend even for me. Why the government has to introduce this measure is unclear, unless it is to encourage the already “wellto-do” to borrow more funds from the banks and create more risks to the banks.

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A sustainable lending policy based on prudent and responsible lending supported by genuine prove of ability to pay, with sufficient credit risk and property risk analysis, would help the industry better. Let’s see what our expert had to say: At this juncture, the government must take note that there are property “selfproclaimed experts” or “gurus” who are drumming up campaigns about how they owned tens of properties and how they can teach people to secure several loans at the same time.

These gurus (mushrooming in Facebook) are behaving like financial advisers without licensing, tempting those who are naive with hopes. The measures pronounced by the government only help people like them.

If they have 19 properties, they can sell three, keep the gains and buy four or more properties with the gains. Should the government help these handfuls of people or should it have policies for the people?

These were his suggestions: 1) Housing developers should offer higher discounts to off-load their unsold overhang stocks instead of the government bailing them through a waiver of taxpayers’ monies.

2) The government must rescind the above proposal and implement a sustainable tax. The RPGT tax should be maintained with the repealing of perpetual tax of 5% beyond the fifth year.

3) The 70% loan margin is the prerogative of the lenders, ie banks and financial institutions. There is no PROPERTY360DIGEST

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economic benefit generated by this measure except perhaps to make the rich buy more properties and the banks to shoulder the risks.

4) An initial grant to first-time house buyers to enable them to buy the affordable houses that are being offered. This could attract a larger number of people to buy houses and as well as to resolve the housing shelter problem. First-time house buyers can also be assisted by waiving the stamp duty for the first house that they buy.

This will further encourage first-time buyers to buy a house for themselves.

5) The government could perhaps be more specific in the reintroduction of HOC. Developers who are holding properties not sold but completed with CC or OC for more than three years can be supported by HOC. We concur with Chang as we too have mentioned that whatever benefits or waiver should include secondary market sales too and not just developers. Even with a RPGT waiver, it is going to be tough for people to dispose of their property if these incentives are only offered to products in the primary market. It is without doubt buyers would flock towards new developments to enjoy the given benefits and neglect products that are in the secondary market. This would inevitably crash the secondary market in time to come.

According to Chang, if these benefits were offered to the secondary market too, owners could consider refinancing their property since the interest rate has been reduced by the banks to stimulate the domestic market.

can advise any potential buyers on the There is an urgent need properties that they are buying. At least for transparency in price these estate agents are subject to a code of ethics and are answerable to discovery the Board of Valuers, Appraisers, Estate Agents and Property Managers. The (The lack of transparency is never a good thing) so-called investment clubs do not and cannot serve the interest of the buyers We are all aware that the property and there is no legal recourse, if the market has been plagued with opaque buyers are cheated. pricing as well as other matters. What is the best way to rid these unwanted Penjana and the affordable initiatives?

housing market?

Chang: There is a need to have all loans whether from the primary or the secondary market, supported by an independent detailed valuation report, as a check and balance mechanism. This will ensure that the bankers lend to houses on the market value for the property and not on “fictitious prices” as unilaterally stated in the sale and purchase agreements.

We need proper market and feasibility study of new projects before they are even approved. The financial institutions should obtain a full market and feasibility study before they approve any project and their pricing. When valuations are made, the false information exacerbates price discovery which leads to an everspiralling valuation.

Property investment clubs or property gurus who are persuading potential buyers to buy from projects which they had previously booked and been assured of substantial commissions ought to be investigated.

Shouldn’t they be outlawed? There are sufficient estate agents licensed and regulated by the government who

Housing Minister Zuraida Kamaruddin last year declared that the official definition of “affordable housing” must meet three criteria. Price should be between RM150,000 and RM300,000 (between rural and urban), built-up must be conducive for family living and must have a minimum built-up area of 900 sq ft and have at least three bedrooms, and its location must be in areas that are accessible to public transportation links, public amenities, government schools, and hospitals.

Surprisingly, there was no mention of the benefits for affordable housing in the Penjana economic plan vis-àvis housing aspect – or perhaps, the government overlooked it?

Chang’s question here is as good as ours. We would have imagined some initiatives for the affordable housing market amidst the current difficult times that we are all in at the moment.

However, the Penjana doesn’t seem to be very beneficial for those who really need assistance. Let’s hope that Penjana 2.0 will be announced soon to lend aid to the other side of the spectrum, especially the secondary market and the B20 as well as the M40 homebuyers.

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Contact us for a non obligatory consultation now and boost up your hot leads as well as your sales.

03 50362232 0172123544 marketing@property360digest.com gp.emjay@gmail.com PROPERTY360DIGEST

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REVIEW

Elemen Residences by Tropicana promotes Healthy Lifestyle

By Gunaprasath Bupalan

Another successful addition by a successful builder

(85- acre Central Park and Lake on top of the individual private open green space within each development parcel)

Aside from the standard mantra rule of location, location, location when it comes to property purchase, other elements need to be looked into. One key element that most developments lack is the concept of healthy living.

green space within each development parcel and enveloped by a 7 km vehicular free bike trail/ jogging path in the Central Park along the water edge for a variety of sports and recreational activities.

At Elemen Residences, Tropicana Aman

by Tropicana Corporation Berhad, the element of healthy living is the basis of the project – to ensure a sustainable and healthy lifestyle for all its residents.

In most of today’s developments, there is much of a need by the builder to utilise the available space with additional development of units.

This not only sacrifices space on the common grounds, but it also makes the development seem more congested Healthy Living and rather suffocating because of the Boasting 863 acres of prime land at Kota lack of natural airflow.

Kemuning, Tropicana Aman provides a generous 85- acre Central Park and Lake At Tropicana Aman however, far and on top of the individual private open above the provision of generous open PROPERTY360DIGEST

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space and parkland, the layout of the streets and the buildings in the township emphasizes on the northsouth orientation, thus significantly reduce the power consumption on air-conditioning. This well-designed

development adopts the concept of a walkable community where the basic amenities and facilities are within short distance thus reduces the need to drive which indirectly reduces the usage of carbon emissions.

(The controlled access, cul-de-sacs and minimal traffic within the township promote a safer place for children and the elderly to move around.)

Peace of mind

retail and commercial hub that was specially designed to create a friendly, It is good to know that at this township, neighbourhood environment. each residential parcel is a “Guarded and Gated Community”, enclosed by Elemen Residences security fencing with controlled access manned by security guards. Each parcel Amongst the allocated parcels is a 26.49is an identifiable neighbourhood with acre project called Elemen Residences. its unique architecture and landscaping These 233 units of two-storey superlink with its own open space and social terrace homes are also designed with a heart comprising of basic amenities. unique twist. There are only 8.8 units per This means that each parcel is self- acre, significantly dropping the density sustained. size. The 147 Type-A Garden Homes come with built-ups ranging between The controlled access, cul-de-sacs and 3,003 – 3,130sq ft, while the 86 Type-B minimal traffic within the township Lakeside Homes come with built-ups promote a safer place for children and that range between 3,080 – 3,237sq ft. the elderly to move around. This coupled with the intimate neighbourhood centre, Elemen Residences promises many Recreational Hub and other communal sought after inclusions. The first facilities binds the community together. being that it is a Gated and Guarded development with 24 hours security To further enhance the sense of patrolling, perimeter boundary fencing community, residents at Tropicana Aman equipped with CCTV as well as a Visitor enjoy the benefit of a neighbourhood Management System.

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(The 233 Elemen Residences two-storey superlink terrace homes are designed with a unique twist.)

Next is the value of such a landed property within a sought-after self-contained township. Buyers at this moment will also be able to take advantage of the Tropicana 10-TEN campaign and Government’s latest HOC relief where buyers will be offered a low booking fee of only RM1,000. Free cancelation and SPA revocation within 30 days, if you change your mind, zero down payment to reduce your initial capital outlay, liquidity cash back for future endeavors that may include renovation cost amongst others, mortgage relief in the form of reimbursements which allow for savings of interest during construction, 90 percent of your capital outlay being payable only after construction, easy payment scheme to help defer and ease your commitments, free MOT, personalized moratorium for unforeseen circumstances as well as double referral rewards (T&Cs apply, deals applicable to certain properties only) Expected for completion in Q4 2022, this project and township are easily accessible via LKSA, ELITE, NKVE, KESAS, SKVE, Federal Highway as well as the West Coast Expressway.

Fact Box Development Name: Elemen Residences @ Tropicana Aman Development Type: 2-storey Super Link Development Size: 26.49 acres Land Type: Leasehold (99 years) Unit Size: From 3,003sq – 3,237sq ft No of units: 233 units Facilities @ RECREATION FACILITY: Guard House, Terrace Courtyard, Leisure Garden, Children’s Playground, Open Lawn, Garden Pavilion, Outdoor Fitness Area, Reflexology Path, Bicycle Rack, Resting Terrace, Entrance Gate to Central Park, Multi-Purpose Hall & Mini Basketball Hoop Station Selling Price: From RM1,005,800 onwards Phone: 1700 - 81 - 8868 Email: enquiry@tropicanacorp.com.my Website: http://www.tropicanaaman. com.my/elemen-residences. php?project_id=8

SIGNATURE DEALS

FLEXI-BUY

FREE MOT

EASY PAYMENT SCHEME

RM 1,000 LOW BOOKING FEE

MORATORIUM

DOUBLE REFERRAL REWARDS

MORTGAGE RELIEF

ZERO DOWNPAYMENT

Terms & Conditions apply. Applicable to selected properties only*

1700 81 8868 DEVELOPER: TROPICANA AMAN SDN BHD 1030655-A Unit 1301, Level 13, Tropicana Gardens Office Tower, No, 2A, Persiaran Surian, Tropicana Indah, 47810 Petaling Jaya, Selangor Darul Ehsan t +603 7663 6888 f +603 7663 6688 e enquiry@tropicanacorp.com.my Developer: Tropicana Aman Sdn. Bhd. (1030655-A) • Developer’s Address: Unit 1301, Level 13, Tropicana Gardens Office Tower, No, 2A, Persiaran Surian, Tropicana Indah, 47810 Petaling Jaya, Selangor Darul Ehsan • Developer’s License No.: 14012-6/11-2021/01100(L) • Validity: 19/11/2019 - 18/11/2021 • Advertising & Sale Permit No.: 14012-6/11-2021/01100(P) • Validity: 19/11/2019 - 18/11/2021 • Approving Authority: Majlis Daerah Kuala Langat • Building Plan Ref. No.: MDKL/JKB/2/4/1332(10) • Expected Completion Date: November 2022 • Land Tenure: 99 Years (Expiry: 09/11/2110) • Land Encumbrances: Nil • Type of House: 2-Storey Terrace • Total Units: 233 Units (Type A: 56 Units; Type A1: 20 Units; Type A2: 10 Units; Type B: 107 Units; Type B1: 20 Units; Type B2: 20 units) • Selling Price: RM1,166,800 (Min.) - RM2,664,800 (Max.) (Type A: RM1,508,800 (Min.) - RM1,921,800 (Max.); Type A1: RM1,782,800 (Min.) - RM2,170,800 (Max.); Type A2: RM2,102,800 (Min.) - RM2,664,800 (Max.); Type B: RM1,166,800 (Min.) - RM1,736,800 (Max.); Type B1: RM1,687,800 (Min.) - RM1,800,800 (Max.); Type B2: RM1,729,800 (Min.) - RM2,297,800 (Max.)) • Built-up Area: 3,013.89 sf (Min.) - 3,172.12 sf (Max.) (Type A: 3,056.30 sf; Type A1: 3,171.12 sf; Type A2: 3,172.12 sf; Type B: 3,013.89 sf; Type B1: 3,142.31 sf; Type B2: 3,142.31sf) • 7% Bumiputera Discount • Restriction in Interest: Nil • Express Condition: The Land cannot be transferred, leased, or charged except with the consent of the State Authority. The Tropicana Aman development is not associated in any way with the Aman group.

#BUSINESS Now that we have the big picture sorted out we need to focus on the details

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