HB Herald, Issue 3, July 2012

JULY 2012

A Most Exciting And Innovative Development In The Making Aragreens Residences

Ara Damansara An Exciting Growth Area

Discovering The Value Of Nilai

Australia: More Than Just A Good Property Investment

A New Initiative by Henry Butcher Art Auctioneers: The Young Contempo Auction

Market In Brief - Malaysia Property

HB HERALD, JULY 2012

ara damansara - an exciting growth area West and north-west of Kuala Lumpur have always topped the list when it comes to prestigious developments and addresses. Townships like Damansara Heights, Mont’ Kiara, Bangsar and Bandar Utama house numerous multinational corporations and small and medium enterprises, as well as residences of high net-worth and the elite class. Houses here enjoy high demand as lands are in scarcity. Ara Damansara is on road to joining this category of development.

Well Planned Access Ara Damansara is strategically located at the north and west of New Klang Valley Expressway (NKVE), east of Subang Airport Highway, south of Puncak Alam Highway. It is also accessible via the New Pantai Expressway (NPE), the Lebuhraya Damansara Puchong (LDP) and the Federal Highway via the turnoff into Jalan Subang. Apart from all the expressways, this area can be accessed by public transport using Rapid KL bus T607 from Kelana Jaya LRT station. More excitingly, two LRT stations have been planned and approved in Ara Damansara. This project is expected to be completed in 2014. The Subang airport, which is located in vicinity, is a getaway to local and overseas destinations.

Amenities Within 15 Minutes Driving Time Radius Citta Mall Ara Damansara is a new, large, open spaced mall that is family oriented

Ara Damansara township, which was initially mooted and developed by the Sime Darby Property group, is approximately 20 kilometres due west of Kuala Lumpur City Centre near the Sultan Abdul Aziz Shah airport (Subang Airport).

It is bounded by Kota Damansara to the north, Damansara Utama to the east, Subang Jaya to the south, and Kayangan Height to the west.

Ara Damansara covers a total area of roughly 700 acres and comprises residential as well as commercial properties targeted principally at the middle to upper middle income groups. From information extracted from Sime Darby Property’s website, it is noted that to date, more than 2,700 units of properties comprising link houses, semidetached houses, condominiums, apartments, villas, shop-offices, office blocks and SOHO/ serviced apartments have been completed.

Within 5 minutes of drive is the NZX Commercial Centre, Dataran Ara Damansara and the bustling Taipan 2 Ara Damansara commercial centre. The nearest shopping complexes are Citta Mall (5 minutes drive), Subang Parade and Empire Shopping Gallery in Subang Jaya and Sunway Pyramid in Bandar Sunway. There are also other proposed new shopping malls within the vicinity namely Commercial Nexus and Ara Damansara Mall. Driving further, one can find the Summit Shopping Centre, One Utama Shopping Centre and IOI Shopping Centre.

HB HERALD, JULY 2012

The recreational facilities that are located nearby will definitely impress all the sports and golf enthusiasts. Within 15 minutes of drive, you can find Seri Selangor Golf Club, Tropicana Golf & Country Resort, Saujana Golf & Country Club and Glenmarie Golf & Country Club. These recreation clubs provide high quality facilities and services that are catered towards the affluent. The local Ara Damansara Park not only allows locals to enjoy morning jogs and exercises, but also host a small BBQ party over the weekends!

Parents will have the options to send their children to nearby international schools (Sapura Smart School and the Japanese School of Kuala Lumpur) or local primary and secondary schools that are located within 15 minutes drive, including SMK Tropical School, SK Tropical School, SRK Lembah Subang School and SMK Lembah Subang School. In addition, there are several institutions of higher learning within the area, namely SEGI and KBU.

The Tropicana Golf & Country Resort is a 27 hole championship golf course, that is among the best in the country

The newly operational Sime Darby Medical Centre Ara Damansara is a tertiary hospital with centres of excellence for brain, heart, and spine and joint - a plus point for discerned patients who only wants the best.

Ara Damansara Park is complete with jogging track, playground, some simple gym equipment as well as courts for a game or two of basketball, sepak takraw and even badminton. Morning visitors also get to enjoy beautiful lotus blossums at one of the two lakes at Ara Damansara Park.

Taipan 2 Damansara is a bustling town with various service providers and eateries.

HB HERALD, JULY 2012

Property Values

Asking prices of existing condominiums/serviced apartments within Ara Damansara/Saujana.

No. Project 1 2

Ara Hill Amaya Saujana

3

Serai Saujana

4

Pelangi Damansara Sentral (Sunway) Oasis Ara Damansara

5

Built-up (Sq ft.)

Current Asking Price (RM)

Average Price (RM per sq. ft)

1,569 1,827 1,826 2,173 - 2,862 856 - 1,027 674 - 675 572 - 669 944 1,108 - 1,184

800,000 8990,000 1,280,000 1,500,000 - 2,200,000 430,000 - 480,000 320,000 - 355,000 388,000 - 425,000 560,000 - 600,000 700,000 - 760,000

500 540 700 690 - 750 440 - 500 470 - 520 635 - 678 593 - 635 631 - 641

1,808 - 1,890 1.916 - 1,950

890,000 - 930,000 1,080,000 - 1,260,000

500 - 550

The table above page shows the asking prices of existing condominiums and serviced apartments.

It is found that the asking prices of the high-rise residential developments located at Ara Damansara vicinity (Ara Hill, Amaya Saujana, Serai Saujana & Oasis Ara Damansara) are within a price range of RM500 per sq. ft. to RM750 per sq. ft. This could be due to buyers’ growing perception that this area is becoming a high class area. Consequently, the selling prices of the newly launched condominiums/ apartments are on the rise.

Transacted Price Trends by Property Types in Ara Damansara (2007 – 2011)

Source: Henry Butcher Malaysia Landed residential properties in Ara Damansara have a promising growth in prices. In 2007, terraces were priced just over RM500,000. In 2011, they have reached over RM1 million. Residents and investors favour semi-detached and detached homes in this township. In 2007, semi-detached and detached homes were priced in average as high as RM1.1 million and RM1.9 million respectively.

Thereafter the prices have been growing rapidly to about RM2.4 million for semi-detached houses and RM3.3 million for detached houses.

With its accessibility, proximity to amenities, high quality developments and influx of high net-worth and elite classes, Ara Damansara is poised to be developed into a prestigious township offering a lifestyle that promotes close-knit community living.

HB HERALD, JULY 2012

Aragreens Residences - Aeriel view of the development

A most exciting and innovative development in the making - aragreens residences Age proof homes for future living Aragreens Residences is a serviced apartment development undertaken on a 7.42 acre freehold site opposite Seri Pilmoor and Dataran Ara Damansara. The developer is HSB Development Sdn Bhd, a member of the HSC Health Care Group which built Menara HSC next to the British High Commission along Jalan Ampang. Aragreens is a unique development conceptualized based on the following design pillars: Green And Sustainable Development The buildings are environmentally friendly and designed to comply with Greenmark Singapore (Gold Plus provisional) and Green Building Index Malaysia (GBI) standards. The building designs will incorporate rainwater harvesting systems, energy efficient lighting systems, water saving devices, eco ponds, solar panels and other environmentally friendly features.

Age Proof Multi-Generation Homes The entire development will be designed to accommodate the needs of residents of all age groups; from toddlers to aged parents. The residential units will feature dual key layouts which incorporate a separate entrance to a self-contained two bedroom studio attached to a three bedroom apartment. This will allow two generations of a family to stay together under one roof, yet maintaining a high level of privacy. The bathroom in the unit for the aged parents is designed to be wheel chair friendly and thoughtful details such as non-slip floor tiles and a sit down ledge in the bathrooms have been incorporated to cater to those who have special needs. The recreational needs of all age groups will also be catered to within the development, with 26 different facilities including a swimming pool, children’s pool, quiet pool, exercise area, street soccer, half basketball court, rock climbing, skate park, children’s playground and golf putting green, amongst others. More than 60% of the site is devoted to communal facilities.

HB HERALD, JULY 2012

Wellness And Health Care Centric The residential units will be medically enabled i.e. each home will be equipped with a device and tablet which residents can use to have their blood pressure and blood glucose levels taken in the comfort of their homes and the data electronically transmitted to a hub which can be accessed by the residents’ family members and health care provider anywhere in the world as authorized by the residents. Additional diagnosis services can also be added on, if the residents so desire for a small fee. There will also be a range of facilities and services available within the adjacent Aragreens Village which sits on a 1.33 acre site.

Services such as child care and nursing care for the elderly besides other wellness services like medical spa, chiropractor, medical clinic, etc., will be available besides food & beverage outlets, lifestyle retail and convenience stores to cater to the daily needs of the residents.

Entrance statement

The architecture of the residential towers is iconic and unique with its façade rotated every two floors up to present an attractive, distinctive look. There are six towers, each of 15 storeys in height with a total of 700 units of service apartments. There are 34 different layouts with standard units, duplex penthouses and garden units. The built up of the apartments range from 684 sq ft to 3,834 sq ft. A lot of thought has been put in at the design stage to maximize the residents’ comfort and uplift his living experience e.g. the design allows good air flow within the tower so that the apartment units are naturally ventilated and use of air conditioning can be minimized, the detailed positioning of the windows to minimize heat penetration and yet, not obstructing views.

Aragreens Residences is expected to be officially launched in August 2012.

Swimming pool

Facilities podium & garden villa - 4.76acres (approx. 63.4% of the development) are dedicated to community space - one of the highest in the market.

HB HERALD, JULY 2012

Discovering the Value of Nilai Nilai is an address south of the Klang Valley. Most people may not consider this location as a choice residential address given its distance from Kuala Lumpur and the industrial facilities in the area.

While city-centric people may be quick to dismiss Nilai, the reality is that the area has been growing steadily.

The region south of Kuala Lumpur has been experiencing continuous growth since the establishment of Putrajaya and Cyberjaya.

Together with major facilities like the Kuala Lumpur International Airport (KLIA), Low Cost Carrier Terminal (LCCT) and Sepang International Circuit, the region has become more noticeable on the radar of property developers and commercial enterprises.

driving from Sungai Besi to Nilai takes only 30 minutes along the 34km route of the North South highway.

Naturally, the Malaysian Government and property developers have and will continue to support and invest in the region south of the Klang Valley.

This is because it not only houses Malaysia’s Administrative Centre but has also become a bona fide international gateway with the presence of KLIA and LCCT. In view of this and considering the high cost of owning a ‘landed property’ in established locations such as Kuala Lumpur, Petaling Jaya, Subang Jaya, Shah Alam and Puchong, a southern address has become more practical and attractive to home buyers and investors today.

Property prices in an area like Nilai are still well within the reach of most Klang Valley households.

Unlike in the city, where it is impossible to find new terrace homes priced at RM400,000 or below, developers are still able to peg their terrace homes within the RM350,000 to RM450,000 range further south of the Klang Valley. There are even larger homes, with build-up area of more than 2,000 square feet, that are available for less than RM500,000!

KLIA Express at Salak Tinggi Station

Since the mid-90s, developers have been building townships and residential developments in this region. Some of the major projects include Putra Nilai ( Bandar Baru Nilai, 6,230 acres), Bandar Sri Putra (898 acres), Nilai Impian (680 acres), Nilai Utama, Planter’s Haven (270 acres), Bandar Mahkota (1,320 acres), Bandar Enstek (5,116 acres), Kota Seriemas (2,400 acres), Kota Warisan (600 acres) and Alam Sari (423 acres).

The major growth enabler for this region was the huge amount invested on infrastructure. The ELITE highway, the MEX expressway and the LEKAS highway have all helped to facilitate faster accessibility to the southern region; efficiently connecting the Kuala Lumpur and Petaling Jaya/ Puchong locales to Putrajaya, Cyberjaya, KLIA and LCCT. Travel time from Kuala Lumpur’s city centre to Putrajaya by MEX is now only a 20-minute drive along a smooth 26 kilometer highway. Similarly,

In fact, a semi-detached home in Nilai will cost around RM700,000 to RM900,000. The same property in Kuala Lumpur and Petaling Jaya will cost at least a few million Ringgit! There are also bungalows available in the location priced well below RM2 million, some even as low as RM1.4 million. Their counterpart closer to the city centre will cost no less than RM4 million today.

NCI Hospital

HB HERALD, JULY 2012

The lower prices in this area are not expected to remain so for long. Over the last 3 years, property prices in this vicinity have shown significant appreciation. A terrace home purchased in the area that cost around RM250,000 to RM350,000 in 2009 would be selling at about RM400,000 today (a similar, new one).

The continued appreciation of properties in the area can be attributed to its evergrowing facilities and amenities. Today, Nilai and its surrounding townships already boast two golf courses (Bangi Golf Course and Nilai Springs Golf & Country Club), a 4-star hotel (Nilai Springs Resort Hotel), several universities, colleges and polytechnics (Nilai University College, INTI, University Islam Antarabangsa, University Sains Islam Malaysia, Nottingham University, Murni Nursing College and Putri Nursing College), a hospital (NCI Hospital), several hypermarkets (Giant, Tesco and Mydin) as well as several international schools (Nilai International School and Cempaka Ladies College).

As property developers and commercial enterprises continue to add more and more amenities and facilities in the area, the property market will naturally increase in prices over the foreseeable future.

Nilai Springs Golf Club & Resort Hotel

Nilai University College & International School

In addition, the lifestyle in an area like Nilai is also more relaxed when compared to the hustle and bustle of the city centre. One will get a higher quality of living in terms of lower density, more space and greenery.

Who could ask for more when it comes to investing in a new home?

Kota Seriemas

University Sains Islam Malaysia

Nilai Heights

HB HERALD, JULY 2012

Australia: More than just a good property investment Just over 5 hours flight away, one gets to enjoy living in four seasons. Every change in season brings a new flavor, colour, sport and activities that spice up one’s daily life.

Snowdrops sprouting around the parks and open spaces epitomize the coming of spring.

Then comes Wattle Day signifying the first day of spring whilst the fruit blossom simply reminds one of the lovely fruit to come when the weather warms up.

Good coffee is a must to kick start mornings in Australia. The art of roasting, grinding and brewing by award winning barristas has caused such positive publicity that a trend in trying a cup of good coffee is a must when you’re down under! If you are a coffee connoisseur yourself, give us a call before you visit any capital cities in Australia. We have a list that could well be a pleasant surprise to you.

In summer, everyone is out and about of their homes to the beaches, barbeque gatherings, and of course Christmas! Families spend plenty of quality time together outdoor; from visiting farms, winery, beaches, cycling, climbing, to using the facilities available around them.

The food culture in Australia is known internationally especially since the TV programme, Master Chef which truly reflects the country’s cultural diversity. Southern Europe has combined with Asia and the Pacific for new flavours and tastes. Italian, Chinese, Indonesian, Japanese, Greek, Thai, Malay, French and Vietnamese restaurants are common, particularly in the capital cities1.

Australia’s political and economic advantages are complemented by its welcoming attitude and excellent quality of life. Australia was ranked first in the Asia Pacific and fourth in the world for quality of life2, ahead of New Zealand, the USA and the UK. Backed by two decades of unbroken growth, record prices for its minerals and an insatiable market on its doorstep, only a dozen of economies are bigger, and only five nations are richer by GDP per capita at nominal values3.

Australia, without a doubt has strong economic credentials. Paired with their conservative banking and transparent legal system, many institutions continue to invest in Australia.

Recently, the Canadian Pension Plan Investment Board just agreed to a $1 billion joint venture with a prominent Australian developer4. CIMB Trust Capital Advisors has also purchased up to four Australian properties located in Brisbane, Melbourne and Canberra5.

HB HERALD, JULY 2012

Essentially, the migration of Malaysians to Australia started a while back and is deeply rooted within our community. Having visited family members or experienced the life there, many had started considering migration and consequently prompted property transactions. Some rented out their properties and managed to fetch reasonable and consistent returns, while those who sold their properties over the years have also gained quite a fair bit of returns in terms of capital growth and currency exchange – the word of mouth started.

It brings about a question whether it is still the right time to buy properties in Australia? Have you missed the boat? To find out, please call our International Real Estate team at 012 399 7379 or email us at international@henrybutcher.com.my. Let’s have a chat; we will share with you the list of Australia’s best coffee houses regardless.

Department of Foreign Affairs and Trade, http://www.dfat.gov. au/facts/people_culture.html 2 The IMD World Competitiveness Yearbook, 2011 3 International Monetary Fund 2011 4 Lend Lease secures A$2 bln funding for Barangaroo towers,

Reuters, 8 July 2012 5 CIMB TrustCapital buys fourth Australian property, The Edge Malaysia, 3 July 2012 1

HB HERALD, JUY 2012

a new iniative by henry butcher art auctioneers The young contempo auction From our humble beginning in 2010, Henry Butcher Art Auctioneers has gone from strength to strength. The company’s inaugural auction became a historical event in the Malaysian art industry. And we continue to reach new milestones thereafter. The auction on 6 May 2012 was particularly notable, exceeding expectations with sales grossing over RM 4 million and setting a new record of 100% sales (86 lots).

The company was set up with the objective of promoting Malaysian art locally and internationally as well as providing an open platform for the buying and selling of Malaysian artworks. Highlights from previous auctions include a painting by Datuk Ibrahim Hussein’s ‘The Dream’ and Latiff Mohidin’s ‘Pago-Pago Forms’, sold for RM500,500 and RM572,000 respectively.

TYCA will feature works by contemporary artists, including Latif Maulan, Haslin Ismail, Cheng Yen Pheng, Roslisham Ismail, Stephen Menon, Samsudin Lappo, Ali Nurazamal, Ch’ng Kiah Kien and Mohamed Raziff among others.

In conjunction with TYCA, several fringe events have been planned including talks about art investment and the Malaysian contemporary art scene, as well as shows with bands and performance art, providing an engaging and entertaining platform for collectors, avid art followers, and the public alike.

The year 2012 is indeed an eventful year for Malaysian art. Besides the recent auction in May and the upcoming TYCA, Henry Butcher will be holding another main sale in October 2012. For the forthcoming Art Auction Malaysia, Henry Butcher is now inviting consignments.

This year a new auction record was set as Ibrahim Hussein’s painting, ‘Red, Orange and Core’, was sold for RM797,500.

Henry Butcher continues to support young talents with the launch of a new initiative – ‘The Young Contempo Auction (TYCA)’, an inaugural auction of Malaysian emerging artists. The auction will feature up to 35 lots, with the full proceeds to be channelled towards programmes that aid fledgling artists.

It is hoped that this auction will heighten the awareness and spur interest in the works of younger Malaysian artists, and thus encourage them to move on to greater heights in their artistic career. It will also give the market some good indicator prices of the works of emerging artist.

Roslisham Ismail a.ka. Ise Superfiction8 (2008) Photo on Kodak Endura E Paper 30cm x 42cm

Mohamed Raziff Pick it up, Read it, Have Faith and it will guide you to the Right Path (2007) oil on canvas 91cm x 68cm

Ch’ng Kiah Kien St. George Church detail (2009) ink on paper 26.5cm x 75cm

AraGreens Sales Gallery @ Ara Damansara is NOW OPEN FOR VIEWING! Monday to Sunday 10.00 am to 7.00 pm

Exclusive World Premier Launch Prestigious Westminster Development

• Collection of 1, 2, 3 bedroom apartments and duplexes • World renowned, prestigious Westminster location • Sought after London area close to River Thames and the Houses of Parliament • 24-hour concierge and secure underground car parking • Exclusive private leisure suite including swimming pool, sauna, gym and business suite • 999 year lease

Exclusive Exhibition 10th - 12th August 2012

Friday, Saturday & Sunday 10am - 7pm

Mandarin Oriental Hotel, Kuala Lumpur Second Floor, Summit Room

For more information, please contact: Jazmine 012 399 7379 jazgsh@henrybutcher.com.my Christine 012 908 6318 christinewong@henrybutcher.com.my

Another outstanding London development from The Berkeley Group

Whilst every care has been taken in preparing these particulars, Henry Butcher and the respective landlords/ vendors give no warranty, express or implied, as to the completeness or accuracy of the information contained herein. These particulars are subject to errors, omissions, change of price/rental or other conditions, withdrawal without notice, and any special listing conditions imposed by our principals. Henry Butcher will not be liable for negligence, or for any direct or indirect consequential losses or damages arising from the use of this information. You should satisfy yourself about the completeness or accuracy of any information or materials. The information contained herein does not form part of an offer or contact. Computer generated image is indicative only. Sold subject to planning permission.

Market in Brief - Malaysia Property Stable Economy Despite Global Economic Woes Economic growth moderated to 4.7% in the first quarter of 2012 amidst concerns of the debt woes in the Eurozone, the slowing growth in China and the uncertainty of the economic recovery in the U.S. The inflation rate nevertheless fell to 1.6% in June from the 1.7% recorded in the previous month whilst inflation remains low at 3.0% in March 2012.

The Government introduced for the first time, a minimum wage to support low income households. The Minimum Wages Order was gazetted in July 2012 and specifies a minimum monthly wage of MYR 900 for workers in Peninsular Malaysia and MYR 800 for Sabah and Sarawak.

Malaysia’s House Prices Have Continued To Rise Overall, the National House Price Index produced by NAPIC showed a jump of 6.1% in Q1 2012 compared to the same period a year before. However this was a 2.2% drop from Q4 2011. Kuala Lumpur registered a similar trend as the house price index rose 6% y-o-y. whilst the index also went up for Selangor (8.9%), Pulau Pinang (5.2%) and Perak (4.2%). Johor and Negeri Sembilan registered the lowest y-o-y price growth, at 2.2% and 1.6%, respectively.

Terraced houses rose 6.6% Detached houses rose by 2.3% Semi-detached houses rose by 7.8% High rises rose by 4.6%.

The primary market continue to be well supported by house buyers as new projects launched by developers in popular locations still enjoyed brisk sales take-up rates, aided by easy payment and developer interest bearing schemes. The secondary market however experienced slower sales.

Going forward, with the deepening of the economic crisis in Europe and the expected slowdown of Malaysia’s economic growth in the second half of the year, the rapid price increases that we have seen over the past two years are expected to moderate to a more manageable pace. The change in the basis of loan eligibility computation by financial institutions from gross to nett income as well as the more stringent lending policies adopted by banks will have an impact on property market transaction volume as well as price increases.

The following national price increases by property type were noted in the index for Q1 2012: (see graph)

Source: NAPIC DISCLAIMER: • We make no warranties or representations as to its accuracy and we specifically disclaim any liability or responsibility for any errors or omissions in the content.

We specifically disclaim any liability direct or indirect, incidental, consequential, consequential or special damages arising out of or in any way connected with the access or use of the information in this newsletter. The property information provided in this newsletter is for information only and does not constitute a basis for any actions or decisions. No part of this document may be construed as a statement or representation of fact based on which a contract is created.

• All material in this newsletter including all graphics and writings may not be copied, published, broadcast, rewritten, or redistributed in part or in whole without the written consent from Henry Butcher Malaysia Sdn. Bhd., its authors and contributors of articles. If consent is given, consent will be subject to the requirement that the copyright owner’s name and interest in the material be acknowledged when the material is reproduced or quoted, in whole or in part.

• All rights reserved 2012. These terms and conditions shall be governed by and construed in accordance with the laws of Malaysia.

HENRY BUTCHER MALAYSIA Sdn Bhd (160636-P) 25, Jalan Yap Ah Shak, 50300 Kuala Lumpur, Malaysia T : +603-2694 2212 F: +603-2694 1261 E: admin@henrybutcher.com.my W: www.henrybutcher.com.my

For Internal & Client Circulation Only