StarProperty.my Edition 18 May 2014

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INVESTMENT

DO’s & DONT’s

POSH PLACE

FINANCING YOUR OVERSEAS PROPERTY

THE 10 COMMANDMENTS AND TIPS FOR OVERSEAS PROPERTY INVESTING

CASHING IN ON LUXURY AND SNOB APPEAL

It’s easy, if you know how it’s done

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What you should know

05&08

The Nova Building taps on the global city appeal, so characteristically London 07

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StaRpRopeRty.my SUNDAY 18 MAY 2014

PROPERTY NEWS

Buying property beyond our borders

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N recent years, it has been reported that Malaysians are buying up real estate in London, Singapore and major cities in Australia.

Despite the current concerns about the rising prices of our local real estate, the fact remains that property is a dominant and preferred investment option for a certain segment of our Malaysian diaspora.

In a Reuters report, Malaysians bought £1.3 billion (RM7.15bil) of London property in the first seven months of 2012, more than British buyers and beating the United States into second place among overseas investors with £793 million (RM4.4bil), according to a property consultant CBRE Group.

Australia has always been a property investment favourite with Malaysians, especially for Baby Boomers planning for their

General Manager, Digital Timothy Hor timhor@thestar.com.my Editor Yvonne Yoong yvonneyoong@thestar.com.my Contributors Aimee Choon Datuk Stewart LaBrooy Dr Daniele Gambero Grace Chang Ian Chen Susan Chin Veena Loh Willy Wilson Writers Melvin Chow Nurul Hanisah Editorial design/layout Eng Hwa Thanaraja Fadzil Hafiz Idzla Izuddin Shankar Marketing Head, Sales Janice Yeap jyeap@thestar.com.my 012-3303376 editor@starproperty.my 03-7967 1754

children’s education in Australia.

In addition to being relatively close, Australia is known to be a politically and economically stable place for investment.

It was reported recently that Australia is a hotspot for Asian property investors, ranking most popular for Indonesians, and the second most common investment destination for Malaysians.

And, despite the spiralling prices of property in Singapore in the last few years, Malaysians accounted for a high percentage of all foreign purchases, coming in regularly as the top three nations buying into Singapore.

Chinese buyers accounted for 27.8% of the total foreigner transaction volume in 2011, up from the annual average of 15.5% from 2008 to 2010.

They overtook Malaysia and Indonesia to be ranked in the top spot.

However, Malaysia has remained in a strong number two position in the last couple of years.

This reflects that interest in purchasing property on a global scale has transcended what used to be a local property market scenario.

A global property market seems to be the rules of engagement that is setting the tone in this modern day and age.

TIMoTHY Hor General Manager, Digital

5 reasons to buy overseas property The world of international real estate investing is fair game for anybody.

By IAN CHEN

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YOU’RE probably well-versed in navigating your way through the local property market, but perhaps you’re thinking of venturing into purchasing overseas property.

To give you a jumpstart into what you need to know, here are some tips.

Armed with these tenets, the world, which now has much to offer, can be your property oyster.

Don’t put your 1 Diversify: eggs in one basket The economy of tomorrow is not set in stone – anything can happen.

As national market growth is independent of other international market growth, take advantage of foreign markets whose economy is performing relatively better than our local scene. Investing overseas allows you to ride on the highs of the different markets, increase your portfolio, expand your horizon of opportunities while it lowers your risks of losing – everything.

Furthermore, diversifying your investments in different markets will help tremendously with forward planning. Save the hassle and an exorbitant amount of money if you have plans to further your children’s education overseas.

Instead of paying rental for your child’s stay, pay off the instalment and the likely capital appreciation will rise upon selling the property.

your nest in 2 Build another currency

Investing in a property overseas gives you the opportunity to build your nest in a different currency.

Rather than solely investing in your own country, seizing the moment to hedge on other properties in foreign countries that are undergoing a good economic run may bring forth a promising return.

Also, surround yourself with the additional benefits of earning in stable currencies (i.e. AUD, Pound Sterling, etc.), through rental yields.

In addition, investing in property in more than one country (i.e. foreign currencies) will potentially protect

and secure you financially if one market faces an unexpected downturn.

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The 2013 Economist Intelligence Unit’s (EIU) Global Livability Survey ranked Melbourne three years in a row as one of the world’s most liveable cities. Seen here is Melbourne’s QV, a shopping mall located within the Melbourne Central Business District (CBD).

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The London Bridge is one of London’s famous icons. London’s stable economy has attracted many foreign investors and international students who have recognised its viability as a liveable city and quality education hub.

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A modern residential townhouse which is popular among Malaysian investors.

upfront 3 Lower commitment

Malaysian investors have options – be it investing locally or overseas.

There are benefits of a lower upfront commitment by investing overseas.

Malaysia practises the progressive built scheme where payments are required to be made in progressive instalments until the project is completed.

Australia, New Zealand and the United Kingdom on the other hand, practise the 10/90 payment scheme where buyers are required to put down 10% of the property price upfront while the balance is required only when the project is completed.

This may take two to three years, allowing investors to consider other investments in the meantime.

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Ride on the boom of developed markets

Developed countries like the United Kingdom, Australia and Singapore are currently having a good run with their economy. Thus, the population will experience an increase in purchasing power subsequently leading to a rise

in demand of assets, including property. This also enables foreign investors to join the bandwagon in picking up property while awaiting the potential capital appreciation.

5 Stability

Many believe that stock investing is still viable. Although stock investing is a dynamic and fluid asset that can bring in instant results and gratification, it is also a fickle platform for anyone to invest in wholly. At any day and time, the stock market might face a disastrous crash, and in a blink of an eye, so could your investments.

Property investments however, are a relatively solid platform for investments with a high capital appreciation assurance due to inflation.

Consider the fluctuating property prices; it will be steady and gradual as compared to the fluctuation of the stock market which can be unprecedented and volatile. >> Ian Chen is the chief executive officer of Jalin Realty International, a global real estate marketing consultancy.

Starproperty.my SuNdAY 18 MAY 2014

BEYOND BRICKS AND MORTAR

Nothing foreign about overseas property

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HIS issue, we explore the inside out of foreign property - the challenges of investing in bricks and mortar overseas, the potential pitfalls and, of course, the viability of lucrative returns that can be obtained from these investments. For those who are now considering buying overseas property, check out the recently unveiled projects abroad in the following pages.

From vast tracts of land that “happen to come with a property” in Michigan, the United States, to tried and tested London property - still highly sought after for its international viability as a world-class cosmopolitan city, the draw of the overseas property market certainly cannot be underestimated.

By YvoNNe YooNg yvonneyoong@thestar.com.my

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T’S certainly an ode to spring judging from Royal Selangor’s newest rollout. Featuring wellcrafted, innovative designs, here’s a collection that will grow on you, even as spring turns into summer.

Entitled “Reimagine Pewter through Royal Selangor’s Spring 2014 collection”, the season’s latest designs give a new reason to celebrate the spirit of joie de vivre.

London’s reputation for higher education par excellence has seen parents buying properties for their children to live in while they are studying there.

Meanwhile, the capital appreciation of these properties in the long run shows the potential viability of these investments.

Tapping upon the expertise of those who have experience in promoting, managing and overseeing overseas property, we sought expert views, advice, insights and tips to pave the way for better understanding of the rules of the international property game.

A seasoned advocator of overseas property, Jalin Realty International chief executive officer Ian Chen imparts several useful tips, as well as the viability and potential risks

involved for those keen on buying property abroad.

He lists the 10 commandments of overseas property investing.

No longer are the boundaries of purchasing property confined to local shores - globalisation, the after-effects of the Global Economic Crisis and a host of other factors combined have turned the world into a global property market - a playground - of sorts.

This is especially true for the savvy, streetsmart investors as fluctuation in foreign currencies can turn the tide in their favour.

In the same light, expatriates too are making a beeline for our shores - attracted to the all-year-round sunny weather, food and friendly people.

Property here, when compared to the rest of the world, are competitively priced - although locals may feel the pinch of the increasingly soaring prices of purchasing a roof over their heads - coupled by the rising cost of living.

The Malaysia My Second Home (MM2H) programme has proven, from the way it has taken off, that interest in local property among foreigners can soar, with the right measures in place.

YvoNNe YooNg Editor, StarProperty.my >>Bouquets & brickbats on the bricks and mortar industry welcomed at: editor@starproperty.my

Springtime revelry

Timeless, functional and playful - here are some reasons to celebrate the joys of life.

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Wow for wildlife

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Bird tooth box from the Wild collection by Royal Selangor.

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Monkey egg cup from the Wild collection by Royal Selangor.

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Putting the “wow” into the Wild collection is an enchanting series of children’s gifts featuring animals and birds in their natural habitat.

Beautifully sculptured to the last detail, the bird tooth box and egg cup encircled by a group of playful monkeys shed light on the symbiotic relationship between animals and their surroundings.

This series feature a trinket box, mug, bubble blower, coin box, photo frame and book ends.

Circa combination Combining pewter and wood, this collection chiselled by skilled craftsmen contrasts two different tones of wood to perfection.

Besides the salad bowl and tray design, this first Stripe series also features a spice mill, bowl, bottle coaster, wine chiller and tea caddy.

Teeing off to spring Designed by Mikkel Bering, an inventor and self-taught designer from Denmark, Swing derives its clean lines and precise proportions from the game itself.

This Scandinavian-inspired range includes wine accessories comprising an aerator (in the form of an actual sized pewter golf ball affixed with a mini flag), bottle opener, wine pourer, funnel and bottle stopper.

The golf bag tag and a key fob are items born from the versatility of pewter and the designer’s passion for golf.

A striking testament indeed to the power of a tee off that oozes style.

Knots landing Not to be ignored, the Knot collection profiles the precious moments in life. This range resulted from Royal Selangor’s creative study tour to Japan and features the Japanese Mizuhiki knot dating back to the sixth century CE, as the central motif that symbolises togetherness. Sculptured and polished to a soft satin finish, the delicate lustre of pewter is reflected in this collection which comprises a tumbler, pendant, trinket box, coaster, photo frames, dishes and cufflinks.

STAR THE OPERTY PR

Charming chess sets In the brand’s classic tribute to an enduring heritage of fine craftsmanship, Royal Selangor ushers in a modern approach to an age-old game with its latest Western chess set inspired by the modernist 1920s and the Chinese chess set paying tribute to the Northern Song Dynasty. Made of wood and pewter, these chess sets will make an impressive statement that will complement your interiors perfectly.

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Aesthetics of spring The Astera collection pays tribute to the chrysanthemum, considered the flower of autumn for its ability to withstand heavy frost.

Having been incorporated into the crests of noble families and once revered by Japanese Emperors, this national flower of Japan is one of the four “honourable plants” representing one of the four seasons.

The range crafted in satin finish comprises a trinket box, candleholder, chopstick rests and dishes.

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Salad bowl and spice mill from the Circa - Stripe collection by Royal Selangor.

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The tray from the Circa - Stripe collection by Royal Selangor speaks of sleek style and stylish substance.

Starproperty.my SUNdAy 18 MAy 2014

COVER STORY

London draws Asian capital

By GRACE CHANG & VEENA LOH

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HEN we think of London, we always picture its bustling city life and its red doubledecker buses zipping through the streets amidst its grey backdrop. However, London’s property outlook is anything but grey.

According to the most recent Jones Lang LaSalle data, the three highest growth rates of capital flows from Asia-Pacific were from China to the United Kingdom (UK), Singapore to Malaysia and Singapore to the UK. Capital flows from China to UK grew at a whopping 490% Compound Annual Growth Rate (CAGR) from 2011 to November 2013, with an average transaction volume of RM2.45bil per annum between 2011 and 2013.

Singapore to Malaysia has had an average increase of around 283% per year and RM2.34bil in average yearly deal volume. Finally, Singapore to the UK has grown at 152% yearly with RM4.26bil in average transaction volume.

Singapore and China had the largest sources of capital with about RM33.3bil each. Approximately 40% of outbound Singapore capital went to the UK and 29% went to Japan.

Chinese capital was more evenly spread with 25% to the United States (US), 22% to the UK and 22% to Singapore.

Overall, the UK attracted the largest proportion of capital flow at 26%, followed by the US at 21%. The office sector remained by far the favoured asset class of all investors purchasing in the UK.

Why the UK? Why is the UK such a favourite property investment hotspot?

The UK has long been viewed as a safe property haven to many, but its depreciated currency in the aftermath of the Great Recession, has significantly added to its appeal as an investment opportunity, particularly in central London.

Approximately half of prime central London properties are bought by buyers from the Middle East, China, India, South-East Asia and Europe. Between March 2012 and March 2013, Russians bought 8.5% of all London properties worth above RM10.9mil, followed by China, the US and the United Arab Emirates at 2.8% each.

This means that prices in the richer parts of the capital are to a large extent, effectively set by non-Pound Sterling buyers. Even within central London, there is a divergence between prices of prime central London houses, mainly influenced by cash-rich buyers overseas and that of central London flats which are fuelled by domestic economic factors.

Nationalities that are in a good position to buy now are the Chinese, who have seen the Renminbi (Yuan) rise 30% against the Pound Sterling during the last five years. Favouring this trend, China’s HNWIs (high-net-worth individuals) keep one-fifth of their assets in property and have a strong

Asia places confidence in sterling property.

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Asian currencies to 1 British Pound

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CNY (Chinese Yuan) / GBP (Great British Pound) MYR (Malaysian Ringgit) / GBP (Great British Pound) SGD (Singapore Dollar) / GBP (Great British Pound)

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Chinese, Malaysia and Singapore currencies stronger against Pound Sterling. appetite for London’s best properties, particularly in areas such as Knightsbridge.

The growth in foreign buyers’ interest has caused UK projects to be popular among Asian buyers, making the Britons the minority.

This has resulted in a divergence in asset classes of properties bought

by Pound Sterling and cash-rich non-Pound Sterling buyers.

Choices abound for buyers. New developments built and designed by developers and architects from diverse countries and the rejuvenation of historic landmarks add to London’s image of a global cosmopolitan city.

London makeover Notable new developments include the RM10.9bil regeneration project of King’s Cross which will create a new postcode and 20 new streets; The Heron that aims to be the first major residential development in London since the Barbican

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Restoration of the River Thames has increased the waterfront property values.

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Some London addresses are perceived to have timeless value.

more than 30 years ago, Battersea Power Station that cost RM43.7bil and is already the largest brick building in Europe and finally, The Shard, the tallest building in Europe which is clad in 11,000 glass panels.

London has also attracted Malaysian developers to build their name and fortune in this city. After the success of its first phase, Battersea is moving on to the second phase. IJM Land Bhd has plans to launch more of its maiden mixed development projects at Royal Mint Street. Meanwhile, Eastern & Oriental Bhd (E&O) has launched Princes House in the heart of London. Not to be outdone, Singaporean developers that have recently bought RM1.05mil worth

of London land also plan to build more residential units.

Asian touch Despite the introduction of the Stamp Duty Land Tax rate of 7% on residential properties over RM10.9mil and the introduction of 15% charge on sales through offshore companies in 2012, London’s property sales remain robust.

Sales have remained steady on

properties above RM16.3mil, indicating that wealthier buyers still have not been put off by such measures, although property sales in the RM10.9mil to RM16.3mil range have softened. While London’s property market continues to remain attractive to foreigners as a safe and prime property haven, the attraction may pale a little with the proposed introduction of Capital Gains Tax on non-resident purchasers that will kick in on April 2015.

STarPrOPerTy.my SuNDAy 18 MAy 2014

COVER STORY

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The 10 commandments of overseas property investing Thinking of buying properties abroad? Follow these tips to ensure you navigate your way smoothly.

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Property Guide

By IAN CHEN

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NDERSTANDING the tricks of the trade in overseas property investment overnight is quite close to a mission impossible.

So here is a quick guide to international property investment. >> Ian Chen is the chief executive officer of Jalin Realty International, a global real estate marketing consultancy.

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DOs

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Do hire experts familiar with local regulations

From lawyers to specialised agents to financial consultants, the locals always know best how to help manoeuvre you around foreign terrain.

2 Do your homework

Keep the research going and be realistic. As the property landscape perpetually evolves, you will never know enough.

Prepare a checklist for weighing out the pros and cons for each investment.

Conduct thorough research on the foreign property you wish to purchase.

Ensure the location of choice should be in a thriving area or places that are undergoing a structural uplift (such as the introduction of new amenities, roads and so on). If you strategise wisely by getting in early at a lower price, by the time the property achieves maturity, you will benefit from the increase in price should you decide to resell due to capital appreciation.

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Do check if you are eligible for financing

Hire a local mortgage broker to help manage your loan proposal at the different local banks. These local loan experts understand the local banks’ requirements best and would always know where to look out for the best rates.

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The Sydney Central Business District is Australia’s financial and business hub.

Being the country’s most populous city, it attracts international property investors.

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Terraces appeal to the younger crowd.

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London is highly sought after as a liveable city. It remains in the top 10 list of global investment property hotspots.

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The well-lined Oxford Street in London.

DON’Ts Do understand the entry and exit costs

Which investment would be more worth it? Consider and weigh out your entry and exit costs.

• Entry costs involve down payment, stamp duties and legal fees.

• Exit costs involve Real Property Gains Tax (RPGT) and legal fees.

think of your local 5 Do tenants

Look for properties that will be appealing to the local tenants and not what will be appealing to you personally.

Understand the trends of the “wants” of your target market and ensure you invest in a property that meets the target market’s needs.

work out your 6 Do investment returns

Prior to an investment, consider how much rental yield and capital appreciation you expect from the investment.

As a benchmark, your rental yield should be equal or more than the interest imposed on the property loan; whereas your capital appreciation should be benchmarked against the local inflation rate.

A capital appreciation should be expected with a higher inflation rate.

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Don’t try to handle the rental management on your own Most overseas properties have professional property managers to manage your property at a reasonable fee including rent collection and paying your outgoings, etc.

Property managers are experienced professionals who understand the terms and conditions of the rental agreement from the inside out. Their consistent checks will also make them more familiar with your tenants’ behaviour, saving you the hassle and headache of rental management.

forget about 8 Don’t exchange rates

Time your purchases with a good exchange rate or risk the laws of exchange wiping out all your capital appreciation or rental yield. Be mindful that what you make in capital appreciation can easily be lost with the volatile exchange rate.

Don’t just rely on rental 9 outgoings income to cover Another common factor mostly overlooked by investors is neglecting to take into account the long-term outlook for their property investment (i.e. capital growth).

Most investors tend to focus on the shortterm (i.e. rental yield) instead of the poten-

tial capital gain a property can generate when it is resold in the future. If you feel your property has experienced a healthy capital growth, seize the opportunity and consider selling it, then utilise the gains to reinvest in a new property.

Alternatively, in the event where you decide not to resell your property, keep refinancing an open option. By refinancing that same property, you would be able to expand and diversify your property portfolio in the long run.

For example, at the time of purchase, your property was valued at £500,000 (RM2.75mil) with the first loan obtained at 80%, which is £400,000 (RM2.2mil). Five years down the road, due to inflation and capital appreciation, the banks now value your property at £700,000 (RM3.85mil).

You then choose to refinance your property with an 80% loan at £560,000 (RM3.08mil), leaving you with a surplus of £210,000 (RM1.16mil) after paying off the first loan.

This surplus can be utilised as downpayment for your next property – ergo, beginning a new cycle as you diversify your portfolio.

10 Don’t overstretch

The economy is unpredictable, period. If there is a shortfall, you need to be able to cover sufficiently without a rental income.

Always keep track of your cash flow.

Be discerning and cautious to avoid overstretching your capabilities and going overboard.

Starproperty.my SuNdAy 18 MAy 2014

COVER STORY STAR THE OPERTY PR

Michigan is where it’s at

By AIMEE CHOON aimeechoon@starmedia.my

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etroit, Michigan was known as the beating heart of the automotive industry, but her economic woes have certainly been well documented in recent years.

However, satellite municipalities in the Metro Detroit area are now making a comeback as their economies have started to recover at a healthy rate and they are fast attracting the attention of investors the world over. “the last two years have seen a rejuvenation of Michigan’s core manufacturing industries as well as a diversification into other areas of commerce, in particular in the real estate and technology sectors,” explained real time investments (rti) co-founder and director of sales Javier Valiente, speaking at the Michigan Property Portfolio launch.

According to Valiente, the past few years have seen local and international businesses alike returning to Michigan to set up headquarters, which have created about 88,000 new jobs.

“All of which bodes well for property investors as property in strategic locations offer bright prospects for short-term income and longterm capital growth on the back of a resurgence in Michigan commerce,” he enthused. it appears that property prices in Michigan have bottomed out and are now beginning to rise. this makes it the ideal time for investors to seize the opportunity and invest in Michigan. to that end, Malaysian investors will now have access to a portfolio of homes priced between USD45,000 (rM145,000) and USD70,000 (rM225,000). this is the result of the partnership between rti, Lifes Good Property Consultants Sdn Bhd and Ace realty. the properties offered by rti boast built-up areas of 1,300 sq ft and above average plot sizes of 5,000 sq ft.

“Just to be clear, we’re actually buying the land – freehold land – and a beautiful refurbished home happens to come with it,” said Lifes Good Property Consultants Sdn Bhd director Sumy ra.

She is of the view that the prices offered for the Michigan properties are competitive even by local standards. “it’s an interesting matter,” agreed Valiente. “i actually had a Cambodian investor who bought five or six properties about a year and a half ago, and he was absolutely staggered with the amount of land that he got with his property. “the first question he asked me upon completing the purchases was ‘Javier, are there any documents to confirm that when i buy this house, all the land around it is mine?’ And i told him, ‘You’re not buying the house, you’re buying the land. it just happens to have a house in it’,” he elaborated.

Additionally, the properties are only sold after being refurbished and tenanted by rti.

Looking to expand your property portfolio by investing overseas? Real Time Investments (RTI) together with Lifes Good Property Consultants and Ace Realty tell us why Michigan is a great place to invest.

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therefore, the investment generates an average nett rental income of between 10% and 15% of the purchase price and guarantees a minimum of 10% nett rental income per property for the first two years.

“We only sell units to investors once they have been refurbished and, more importantly, tenanted as well. “thus, investors start earning income from day one,” Valiente added. the fact that these properties are bought from the secondary market also means that investors can buy a house in Michigan at approximately half the cost of building a new one.

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Real Time Investments co-founder and director of sales, Valiente, speaking at the Michigan Properties launch in March.

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Lifes Good Property Consultants chairman Sheridan has invested in properties in Michigan.

rti also offers full management of the purchased property throughout the life of the investment. “i think one of the main factors that make our clients really comfortable with investing is the assurance they have that everything we sell, we’ve bought first with our money,” said Valiente.

“We know the exact state of the refurbished property and we know the tenants because we’ve screened

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Ace Realty Principal Raymond Leong Tat Khoon delivering his speech at the Michigan Properties launch in Kuala Lumpur.

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An image of one of the sold Michigan Properties.

them ourselves.

“Secondly, investors have the confidence that we’ve bought something that we are happy to hold onto if we don’t sell it. i’m not going to put my money down for something that i wouldn’t hold onto myself,” he added.

Lifes Good Property Consultants chairman richard Sheridan also vouched for the transparency of the entire process.

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An example of one of the many quality Michigan properties that are now being sold on the secondary market.

“i would like to add that transparency is very important. i would be happy to share with all of you what i have bought so you can see the exact process.

“Any Malaysian investor would be able to see what i have purchased and also what Sumy has bought with her own name as director. We know how it works,” he concluded.

SuNday 18 May 2014

Starproperty.my

Starproperty.my SuNday 18 May 2014

CoveR SToRy

STAR THE OPERTY PR

Designer Block By yvonne yoong

yvonneyoong@thestar.com.my

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HE Nova Building, part of a huge one million sq ft mixeduse development that will be built across a five-and-a-half acre site located just over 200 metres from Buckingham Palace Road, will make a statement in the skylines of the prime central London neighbourhood once it is completed in 2016.

Other buildings, by London’s standards, only go up to three- or four-storeys, so there will be unobstructed scenic views. Posh doesn’t even begin to describe this project being planned in the upper crust, coveted part of upper London with units priced from £2,000 per sq ft (RM11,000 per sq ft).

The Nova Building showcases Land Securities’ latest venture into the high-end residential market.

Land Securities, worth £6bil (RM33bil) with a strong 70-year corporate reputation is one of UK’s largest public-listed property companies.

It has forged its name in offices and retail buildings, and is now setting down the path of high-end residences.

“The global demand to live in the best parts of central London is staggering. Not just from Malaysia, but South-East Asia, the Middle East, Europe and the whole world.

“They’re all trying to live in this small zone of just a few square kilometres,” said Land Securities residential director Tom Eshelby in an interview with StarProperty.my in which he explained the attractions of London as a global city.

“We love the fact that people the world over want to live in London.

Buckingham Palace Road, London SW1, where the Nova Building is located, is considered to be the Golden Postcode. We’re deliberately targeting a global audience because London is a global city - there’s no getting around that. It’s something that we celebrate,” he said.

The project has a Gross Development Value (GDV) of £350mil (RM1.9bil) comprising 170 apartments with large offices and retail outlets taking on a life of their own behind its residential block.

The units is priced at about £2mil (RM11mil) for a two-bedroom unit while maintenance is approximately £8.5 per sq ft (RM47 per sq ft).

Each unit comes with a car park.

“What we have here is rare. In the last 20 years, the supply of high quality, new homes in London has been constrained. There’s not that much land and it’s very difficult to get the planning consent which is measured in a few thousand units per year. That’s all it is.

“Then, you’ve got the big band around central London. There, the supply is much higher but I would urge people thinking of investing in London to think carefully about the real basics of supply and demand.”

Priceless place making “Land Securities’ emphasis is about place making. It’s not just the building themselves, but also about the areas around the buildings that are important.” The private launch in Kuala Lumpur attracted a diverse mix of buyers with some building a portfolio of projects in London.

“For those buying into central

Cashing in on luxury and snob appeal

Fancy a piece of prime central London real estate located nearby Buckingham Palace with a golden postcode to match? The Nova Building, part of a mixed-use development by Land Securities has that upper crust residential address.

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London, this could be their third, fourth or fifth home. They might have a house in the English countryside or in the south of France.

“This property is a luxury product. As a building, what is remarkable about it is its architecture. It’s a very bold, striking and stylised modernist building as compared to most new residential buildings in central London that tend to be conservative, safe and a little boring.

So, it’s a departure from that. I think that too many developers in the UK are guilty of bland, boring architecture as they’re within commercial imperative,” added Eshelby.

Land Securities’ first residential launch of Wellington House was three years ago.

“The two biggest centres in Asia for UK developers are Hong Kong and Singapore. And then, of all the others, Malaysia is the most important, really,” he opined.

London property haven “The point is that prime central London caters to a global market.

It’s not dealing with domestic housing – but reflects London as a global city. When the Global Economic Crisis occurred, it affected London as much as any city in the world.

But, from 2009 onward, and in 2010, we’ve seen two things. The exchange rate made it attractive for South-East Asian buyers versus 2008, which was the previous peak.

“Secondly, the combination of fallen capital values and weaker

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Nova Building, London’s new destination and posh address.

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Land Securities residential director Eshelby.

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Modern contemporary interiors.

that one is buying a safe investment and a prestigious product at the same time. “London is a great city to invest in. It’s also a fun city to live in or to own property.” Prime Central London has, in the last five years, proven itself, a safe asset for uncertain times, and a really high performing asset because “everybody has this flight to quality” in wanting the “best in the best” – most central and convenient location.

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Good as gold

sterling strength meant that buyers had a strong financial reason for investment. Suddenly, there was a big emphasis on purchasing in London. Also, in times of global uncertainty, prime real estate in the big world cities such as London becomes a safe haven of sorts.

“It’s interesting that London serves quite a few roles altogether.

It is at once, a very strong financial powerhouse and people feel safe putting their money in pound sterling. Residential property in London is also seen as a safe investment of sorts. You touch it, feel it, and it’s got a proven track record so you can gain a yield out of it.

“It’s also got strong growth forecast. Its unrivalled reputation comes from its high culture, theatres, operas and pop culture.”

Citing the appeal of Manchester United, Chelsea and Arsenal globally, he said that London is also the homeground to The Beatles and The

Rolling Stones which makes it seem like a familiar place.

Its heritage, history and buildings like Westminster Abbey, and Houses of Parliament which are a few hundred metres from The Nova Building are added attractions. So too is the Royal Family. Belgravia is close by while Knightsbridge is just a five minute drive away.

“All the heritage that it offers, and the fact that prime central London is such a multicultural centre makes people from all around the world feel that they can belong there.

“Whether they’re living there full-time, going for business or holiday, it has this vibe that is welcoming and multicultural, but also distinctly British. UK, in general, has retained its status as a prestigious place to study, with a strong attraction for people to send their children, if you look around and compare it with other world cities.”

The benefit of buying in London is

“London almost carries some of the characteristics that gold does...

“The less certain the times are, the more people want to put their money into something as tangible and established as real estate in London.” There was a very strong bounce back in residential property in London. A strange thing was happening whereby the worse it got, the better it was. During the Euro crisis, London suddenly saw an uptake in Italian, Spanish and Greek buyers taking their money out of those currencies and putting them into “something they can touch and feel, which is safe in that sense” he said of countries under duress then.

Luxe designer brands “The kitchens designed by Flannigan Lawrence in collaboration with Molteni Dada feature lightly brushed oak-timber veneers, with glass cupboard fronts. We think buyers want this specification. That is the best endorsement.

“There will be a huge roof terrace and residents’ lounge offering the most amazing views. One can see straight into Buckingham Gardens.

London’s a very low-built city, so you’ll be miles above everyone else.

Even if your apartment is a first floor pied-a-terre, you can still enjoy the views.”

STarProPerTy.my SUNDAy 18 MAy 2014

COVER STORY

10

Top things you need to know before investing in overseas property For first timers, the property investment world - especially concerning foreign properties would seem tricky, overwhelming and daunting. Instead of plunging straight into the deep end of the international property abyss that will potentially leave you at a loss, here are some tips.

-4

h

3

“Even in a bad market, location, location, location is a way to still buy and sell property.”

– Vanilla Ice. Narrow down your target market for investment purposes: Would it be for students, working adults or families?

Individual target markets would usually have a trending location choice for accommodation.

The proximity and accessibility of the property to public transport and amenities, schools, work, etc., is always factored into their decision.

For example, families always consider locations that are close to schools and public amenities, whereas working adults would prefer accommodation near or within the CBDs (Central Business Districts) that provide easy access to work.

Nov-12

May-13

Nov-11

May-12

May-11

Nov-10

May-10

Nov-09

k

May-09

k

Nov-08

-6

4.4

40

10%

4.2

30

4.0

20

3.8

10

-10%

3.6

0

-20%

3.4

-10

3.2

-20

3.0

The United Kingdom Monthly National Housing Survey 2013: The balance between supply and demand leads to underlying house price changes by three months. The supply/demand balance towards the year ending 2013 denotes a continued price appreciation.

Q1 06

Q1 Q1 07 08 Rental yield

4 Weigh out the pros and cons

Consider the upside and downside of each market. Monitor the movement of the different exchange rates, primarily of the emerging and developed markets. A stable currency is always good! Also, look into the trends of the individual market’s housing price indicators. The housing price indicator reflects whether the market is experiencing an uptrend, downtrend, or a plateau – giving you a good indication of which market to narrow in on.

yield versus capital 5 Rental growth

Consider the rental yield of your property of interest. The rental yield for each country is variable - different locations and property types will generate different rental yields.

Typically, condominiums in the CBDs tend to generate higher yields as they appeal more to the young, urban working professionals who prefer to have ease of accessibility to work and within nearby amenities. Landed properties, on the other hand, will face higher

Q1 Q1 09 10 Price growth

Q1 Q1 11 12 Rental growth

Q1 13

Q4 13

-30

Source: Jalin Realty International

Rental yield versus capital growth: Graph depicting Singapore’s condominium rental yield, annual price and rental growth.

Know your purpose: The type of property you would like to invest in, whether town houses or apartments, is dependent on your targeted tenants (family or students), and many other factors that underlie your purpose for investments.

2Research, research, research

Target and locate

20%

Nov-13

-2

Strike out unnecessary clutter of thought and you will find yourself on a clear path to the ideal property investment.

“Research is formalised curiosity. It is poking and prying with a purpose.” - Zora Neale Hurston.

The internet is a goldmine of resources, so make use of it. Attend local and international property seminars to help give you a good overview of the different property investing landscapes.

Pick up investment books that will provide you with useful strategies and insights into property investments.

Step up your research into the latest trends: Hotspots, new properties, areas that have potential for growth and many more. Research will grant you a tremendous head start, serving as a beacon of light to guide you through your decision making process.

50

0%

0

-8

4.6

House price inflation

2

Nov-07

Why do you want to invest?

Where do you intend to invest?

When do you intend to invest?

Who are your target tenants?

What do you intend to do: Purchase as owner or as pure investment? n How do you plan on financing your investment?

4

May-08

n n n n n

6

Nov-06

The key to kick starting your international investment(s) is to pinpoint answers for your 5Ws and 1H:

30 %

Supply/demand balance House price growth - lagged 3 months

8

May-07

1

Know your purpose

10

May-06

V

ENTURING into property investment armed with the right knowledge beforehand would certainly be essential, and when done properly, may prove rewarding.

So, here are important tips you need to know before venturing into international property investing.

Singapore condominium rental yield, annual price and rental growth (%)

The United Kingdom Monthly National Housing Survey 2013

Supply/demand balance

By IAN CHEN

capital appreciation but lower rental yield, as naturally, the property price is higher.

6 Demand versus supply

Investigate and monitor the vacancy rate versus the rental occupancy rate of each country closely. When sourcing for properties, always look for areas where there is high demand. The higher the occupancy rate, the higher the demand for rooms, leading to a higher rental yield - and possible capital appreciation.

In Australia, for example, due to the relatively slow and controlled property development rate and the high arrival of immigrants, the demand for residential accommodation is always high, leading to low vacancy rate.

the different 7 Understand buying processes

When in Rome, do as the Romans do.

Understand the different buying processes involved – from protocols, to rules and regulations in buying a property. Understanding

the process from the beginning will allow for a smooth and quick transaction.

8Law abiding investor

Different countries have imposed certain restrictions for foreign property investors. Do learn and familiarise yourself with the property laws of the country of interest to ease and simplify the decision-making process.

eligibility and 9 Financing requirements

A good dose of scepticism and realism is ideal when considering the costs involved in your investment. Ensure you have sufficient capital, and are in fact eligible for financing when considering investing in your country of interest. Do note that the financing eligibility and requirements for foreigners to invest in properties will differ from country to country.

In Malaysia, for instance, the quantum loan offered by banks will depend on the age limit and the income level of the borrower. In Australia however, the quantum loan offered will solely depend on the income level of the borrower alone.

your research close, 10Keep but keep the property experts closer Last, and most important of all, when it is time to get down to the real business, speak to the local property market experts. Just visiting Google and Yahoo will certainly not suffice. Only the local experts in the country of interest can provide you the inside scoop of the latest local trends, property news, capital appreciation and many more. >> Ian Chen is the chief executive officer of Jalin Realty International, a global real estate marketing consultancy.

Sunday 18 May 2014

Starproperty.my

10

Starproperty.my Sunday 18 May 2014

F E AT U R E D D E V E L O P M E N T STAR THE OPERTY PR

The Tropicana collection returns By nuRuL HanISaH nurulhanisah@mystar.com.my

I

N April 2013, Tropicana Corporation Bhd launched the Tropicana Catalogue House campaign with great success. It achieved impressive record sales which significantly boosted the Group’s revenue for the year ending 2013. Following this milestone, Tropicana is proud to launch its highly anticipated Tropicana Collection campaign.

The new campaign featuring an exciting showcase of property choices will run for six weeks from April 15 to May 31, 2014.

Prospective buyers will be introduced to attractive packages during this period. The Tropicana Collection campaign will be a grand showcase of premiering developments in the prime hotspots of the Klang Valley, Penang, Iskandar Malaysia and Kota Kinabalu.

Tropicana Corporation, one of Malaysia’s leading developers, is known for its reputation of building quality developments in strategic locations incorporating creative concepts and designs. Likewise, the Tropicana Collection campaign will feature the Group’s completed projects and also those which are still under construction. These include landed residential units and high-rise residential properties, contemporary commercial developments as well as modern shop offices.

“For this year’s campaign, we have tailored some of the best packages ever offered to our purchasers. We believe that our projects’ strategic locations and innovative designs, this campaign will be well-received. We are also extending our reach overseas to Surabaya, Medan, Hong Kong, Macau, Shanghai and Singapore,” said Tropicana marketing and sales executive director Pam Loh. Just recently, Tropicana launched its flagship sales gallery in Singapore located at TripleOne Somerset, just steps away from the popular Orchard Road.

“We decided to open our sales gallery here to create better awareness of our brand in Singapore for the company’s projects in Penang, the Klang Valley and Iskandar Malaysia.

“Having a strategic presence in Singapore, we can provide better service to our existing and potential customers not only from here, but also those from Hong Kong, Indonesia, China and Australia,” said Tropicana group chief executive officer Datuk Yau Kok Seng.

The highly anticipated Tropicana Collection campaign is back, showcasing some of its exclusive developments nationwide.

1

2

Projects in Penang The Tropicana Collection campaign will feature developments such as the Tropicana 218 Macalister situated on the famous Macalister Road and also the Tropicana Bay Residences located in Penang WorldCity.

Tropicana 218 Macalister is a luxurious integrated development comprising 200 hotel rooms, 211 units of Neo Suites, 88 units of serviced residences and 20 retail units. The built-up areas of these units range from approximately 378 sq ft to 1,312 sq ft.

Besides that, the campaign will also feature Tropicana Bay Residences.

The development is the first component of the integrated development of Penang WorldCity, a mega seafront development which is situated in Bayan Mutiara, Bayan Lepas. It is strategically located at the gateway to Penang Island, only two kilometres away from the Penang Bridge and seven kilometres away from the Second Penang Bridge.

The units have a built-up area ranging from approximately 455 sq ft to 1,945 sq ft.

developments in the Klang Valley In the Klang Valley, featured developments included in the Tropicana Collection campaign are Pandora Serviced Residences and Paloma Serviced Residences in Tropicana Metropark,

Subang Jaya as well as Bayberry Serviced Residences in Tropicana Gardens, Kota Damansara, Kuala Lumpur.

Nestled within verdant greenery, Paloma Serviced Residences comprises two serviced residential towers with generous landscape features to complement a modern, luxurious lifestyle. The 30-storey Tower B, consisting 248 units, meets the needs of different market segments with the 609 sq ft studios that are suitable for single professionals.

The two-bedroom units meanwhile are ideal for young couples or small families. The threebedroom units with built-up areas ranging from 1,259 sq ft to 1,309 sq ft on the other hand, would be more suited for larger families.

The Bayberry Serviced Residences meanwhile is also an attractive development that will also be featured in the campaign. It offers an integration of diverse components including serviced residence towers, a shopping mall, a hotel and office suites.

A linked elevated Mass Rapid Transit (MRT) station will also add to the conveniences.

Moving into Iskandar Malaysia The Tropicana Collection campaign will showcase a variety of the Group’s projects in Iskandar Malaysia such as the Tropez Residences and Bora Residences in Tropicana Danga Bay as well as shop offices in Oasis 2@ Tropicana Danga Cove.

The three-tower Tropez Residences comprises 1,149 residential units made up of luxury duplex units as well as three-plus-one units, two-plus-one bedroom units and one-bedroom studio units.

The recently launched Bora Residences will feature residential towers with built-up areas ranging from 694 sq ft to 3,443 sq ft.

Diverse floor plans including one-bedroom duplexes with double volume ceilings, dualkey concept units, homes with bay windows

1

an artist’s view of the well-designed and beautifully landscaped facilities area in Tropicana Metropark.

2

an artist’s impression of the Bora Residences at Tropicana danga Bay, Iskandar Malaysia.

and balconies, as well as two penthouses are available to suit a multitude of lifestyles.

Additionally, the three and four-storey shop offices located in Oasis 2@Tropicana Danga Cove will also be featured in the Tropicana Collection campaign.

These shop offices are situated within the vicinity of mature neighbourhoods with an existing catchment population of 500,000.

Oasis 2 is bound to thrive as a commercial hub for a multitude of business trades such as retail as well as food and beverage (F&B) outlets, banks, budget hotels, medical services, educational services and office areas. A wide road frontage is also a key selling point.

“Our Tropicana Collection campaign is an ideal platform to showcase the Group’s integrated projects and developments. As part of our marketing strategy, we plan to introduce the right products in the right locations, at the right prices.

“We also plan to appeal to our purchasers via product differentiation and attractive packages with an emphasis on land market segment.

This is part of our plans as we strive to become one of the premier property developers in the country,” added Loh. >> For more information on the Tropicana Collection campaign, please call 03-7728 2018. >> The flagship Tropicana Somerset sales gallery in Singapore is now open at 01-16 TripleOne Somerset, 111 Somerset Road, Singapore.

For more information, call +65 9091 9122.

Sunday 18 May 2014

Starproperty.my

11

12

StaRpRopERty.my SuNDAy 18 MAy 2014

COVER STORY

13

Is the grass always greener on the other side of the border?

Real Estate Insights

By DR DANIELE GAMBERO

I

HAVE been living in Malaysia for the past 15 years and very often locals, upon learning that I’m originally from Italy, ask me this question:- “Why Malaysia? You come from such a beautiful country like Italy. You must be crazy!”

As I’ve mentioned in the title, for sure, the grass is always greener.

But, as a longtime staying expatriate in Malaysia, I’ve been lucky enough to study and learn a lot about this beautiful country.

My decision to elect it as my first home is based on both empirical data and personal experience.

As a supporting argument, I had better state that my life experience until 2003 has been quite diversified as I’ve been lucky enough to visit most other countries, either for leisure or business.

I’ve been living and working or studying for a good 12 years in the three Americas and in some of the European countries before deciding to move to South-East Asia.

Why I chose South-East Asia is easy to explain. Most of the countries in this region are still “developing economies”.

Also, even though an expatriate might not feel as secure, safe and comfortable as in a fully developed country, I was purposely looking for something outside my “comfort zone” in order to explore new challenges and opportunities.

Economists from all around the world have clearly been stating that for the last few years, South-East Asia and China are set to become the new “centre of gravity” of the world economy within the next decade.

In other words, there are and still will be plenty of challenges and opportunities available for the ones able to see them, as compared to the fully developed Western countries which may be in crisis concerning their economies.

Before looking into those common sense parametres, one extremely important decision-making factor is the country’s current and future economic growth. To be clearer on this point, I’ve prepared two comparison tables.

Table 1 compares Malaysia with the performance of fully developed economies while Table 2 juxtaposes the performance with regional countries.

A comparison of these two selfexplanatory charts highlights the fact that even though Malaysia is a top performing country, it still has plenty of room for improvement on all indexes.

However, the opportunities as I mentioned in my introduction, are everywhere.

To define the high potential of the whole region, let’s identify some good reasons why an expatriate should choose Malaysia.

The reasons stated below are not based on numbers but common sense parametres such as reception

towards expatriates, living environment, healthcare, education, ease of language and doing business as well as cost of living.

Table 3: Comparison table for ease of doing business

Country

Reception toward expatriates

Conducive living

Good infrastructure and the ease of doing business Malaysia has good infrastructure as reflected in its roads, water supply, sewer systems and power grids which are stable including its telecommunications, phones and inter-

Enforcing contracts

Result over three years

Overall ranking

2010

Rank

2013 Rank

Singapore

1

1

4

4

2

2

16

36

1

1

13

12

0

37

1

56

2

New Zealand

2

3

1

1

5

6

3

2

26

25

10

17

-1

47

2

54

1

Hong Kong

3

2

18

6

1

1

75

60

2

2

3

10

+2

102

5

81

3

United States

4

4

8

13

25

17

12

25

18

22

8

6

-1

75

3

87

4

UnitedKingdom

5

7

16

19

16

20

23

73

16

14

23

21

-2

99

4

154

6

Thailand

55

85

13

16

6

26

12

20

24

23

-4

122

6

188

7

12

18

Japan

15

24

91

114

45

72

54

64

17

19

20

35

-6

242

8

328

9

South Korea

19

8

53

24

23

26

71

75

8

3

5

2

+2

179

7

138

5

Malaysia

23

12

88

54

109

96

86

33

35

11

59

33

+6

400

9

239

8

Table 4: Kuala Lumpur cost of living compared with other cities in the world (%) Country

Food

Housing

Clothes

Singapore

-32

-65

-13

-58

-27

-41

-52

Hong Kong

-28

-72

+10

-22

-21

-31

-49

Jakarta

+13

-18

+40

-26

-55

+9

-7

Bangkok

Healthcare and education

Unlike most of the other countries in the region, except for Singapore and Hong Kong, English is spoken by most people in Malaysia. An expatriate moving to Malaysia will find that communication is not an issue here.

Hence, purchasing a house, car, the setting up of utilities, getting furniture and other household items become considerably easier due to the ease of dealing with people.

Trading across borders

©The Star Graphics

Unlike some other countries in the region, Malaysia is a democratic, multiracial, multi-ethnic society.

The three main cultures – Malay, Chinese and Indian create an interesting multilayer social environment.

In Malaysia, expatriates will be able to experience the various festivals, food, literature, clothing, culture and more.

Ease of language

Starting a Dealing with Registering business construction a property permits

2010 2013 2010 2013 2010 2013 2010 2013 2010 2013 2010 2013

Unlike our neighbours, Malaysia does not discriminate against expatriates as to the types of jobs they can do, properties they can buy, the bank loans they can get, work permits, visas and others.

Malaysia is the only country in the region that allows expatriates to purchase as many freehold properties as they want provided the purchase price is at a minimum RM1mil per unit.

Healthcare in Malaysia is of reputable standards, and considerably more affordable than abroad.

The quality of service at hospitals here are at the same or even of a better standard, even when compared to other countries. In general, healthcare in Malaysia is at an internationally accepted level.

Malaysia can proudly attest to the fact that Penang Island ranked the third best place to retire based on a worldwide listing.

Meanwhile, Ipoh ranked sixth place for being a “less expensive town” for retirement.

Education is another important decision consideration as expatriates who relocate to a new country will want their children to study at reputable schools and institutions.

Malaysia’s education system is largely based on the British syllabus and in the last five years, it has been improving consistently in terms of the quality and quantity of educational offererings.

Ease of doing business

Transportation Personal care Entertainment

Total

-1

-10

+10

0

+39

+10

0

Manila

+20

-23

+28

+33

+48

+31

+9

Tokyo

-39

-61

-12

-31

-47

-28

-44

Seoul

-46

-45

-17

-9

-36

-11

-32

Sydney

-49

-58

-31

-48

-36

-44

-50

London

-50

-69

-20

-64

-13

-42

-58

New York City

-47

-68

+3

-35

-35

-43

-51 ©The Star Graphics

Table 5: MM2H terms and conditions

Table 6: Approved MM2H applications since 2002 photo by SIa HoNG KIaU

Table 1: World economies index comparisons UNITED STATES

EUROPE UNITED JAPAN KINGDOM

2.52% 0.12% 0.65% 0.65% Government debt as % of GDP 101.6% 90.6% 91.1% 226.1% Government deficit as % of GDP -4.1% -3.7% -7.4% -9.6% Balance of current account -360.7 -34.5 -93.6 56.6 GDP growth

AUSTRALIA MALAYSIA

0.65% 20.7% -3% -44.9

4.7% 53.1% -4.5% 16.6

in USD (bil) Inflation Unemployment

1.5% 7.3%

net systems. In other words, relocating to work and live in Malaysia for Western expatriates is made even easier due to its good infrastructure.

Doing business as either employee or employer is phenomenally simple.

From the registration of a private limited company to the set-up of a manufacturing plant or the registration of a property, the bureaucratic part has been simplified to a few simple procedures and papers.

The Doing Business Report 2013 released in January by The World Bank has ranked Malaysia as the 23rd best country in the world to conduct business.

(Refer to Table 3).

Cost of living One of the main reasons many Western expatriates are moving to

1.5% 10.8%

2.7% 7.7%

0.2% 4.1%

2.4% 5.7%

3.2% 3%

Malaysia is the relatively affordable cost of living.

As low as other neighbouring countries here are in terms of cost of living, the salary scale in Malaysia is comparatively higher while the standard of living, is slightly better.

In Malaysia, you can live on one quarter of the salary of most Western countries quite comfortably. Having a look at the numbers shown below, if you’re looking for a country that is developed and yet is not going to kill your bank account, then Malaysia it is.

(Refer Table 4).

Malaysia My Second Home (MM2H): The additional driver In general, if we can surely say that Malaysia is already scoring high as a preferred country by

Table 2: Regional economies index comparisons VIETNAM INDONESIA THAILAND MALAYSIA AUSTRALIA SINGAPORE

GDP growth 5.54% Government debt as % of GDP 37.3% Government deficit as % of GDP -6.9% Balance of current account -0.55

5.72% 23.6% -1.77% -0.43

0.6% 44.3% -4.1% -2.5

4.7% 53.1% -4.5% 16.6

0.65% 20.7% -3% -44.9

5.5% 97.9% 1.3% 3.4

in USD (bil) Inflation 4.65% Unemployment 2.22% Population (Million) 88.78 Global competitiveness index (World Economic Forum 2013-2014)

70

7.75% 6.25% 245.9

1.22% 0.62% 66.79

3.2% 3% 29.62

2.4% 5.7% 22.79

2.25% 1.8% 5.31

38

37

24

21

2

Stage of development Stage 1 Stage 2 Stage 2 Stage2to3 Stage 3 Stage 3 (World Economic Forum 2013-2014) Factor Efficiency Efficiency Efficiency Innovation Innovation

driven

expatriates, then the values are going to go even higher if we look into what the Government proposes as an “immigration leverage tool” as reflected in the MM2H programme implemented in 2002.

The programme was designed to offer ease of access into Malaysia for foreigners. It enables expatriates to enjoy 10 years’ visa with additional benefits for them and their families.

Table 5 shows the latest requirements of eligibility for the MM2H programme.

Since 2006, the Ministry of Home Affairs has established a one-stop

driven

driven to driven

driven

centre which is in charge of all the MM2H applications.

This is the authority that releases the MM2H visa.

Has the MM2H programme been attractive enough in the past years?

(Please refer to Table 5 and Table 6).

It is better to let the numbers highlight the achievements considering that as at Dec 2013 in Malaysia, there were a total of almost 50,000 expatriates.

Should we take into account their family members, this number can even double up or amount to more.

Recently, an increasing number of

For all applicants

Applicant with specialised skills is allowed to work up to 20 hours per week. A special MM2H committee approval is required.

2002

818

2003

1,645

2,463

101.1

Applicant may start his/her own business.

2004

1,917

4,380

16.5

Applicant must first apply.

2005

2,615

6,995

36.4

2006

1,729

8,724

-33.9

2007

1,503

10,227

-13.1

2008

1,512

11,739

0.6

2009

1,578

13,317

4.4

2010

1,499

14,816

5.0

2011

2,387

17,203

59.2

2012

3,227

20,430

35.2

629

21,059

driven

Year-on-Year change (%)

Since Jan 2014

Yearly number of approved applications

2013 (March)

Total number of approved applications

Items

Year

818

©The Star Graphics

developers has started looking into retirement home projects which will offer even better and more “scopedesigned” facilities and healthcare programmes for the “third age” group - the Baby Boomers.

Availability of opportunities Even though we have seen a very positive picture of Malaysia, as I’ve mentioned above, there is still a huge room for improvement.

This leaves an open door for those who are willing to contribute in a positive way to help the country achieve high income status by

the end of this decade.

Looking at the Economic Transformation Programme (ETP), one will find that from agriculture to food processing, manufacturing to IT (Information Technology), the creative arts to healthcare, there are plenty of choices for new and successful businesses to be started and developed into profitable operating entities.

A number of economic clusters have been designed for growth in different areas of the country and as a natural consequence and fixed economic rule, properties are following suit.

Upon approval below 50 years of age

Foreign Direct Investment (FDI) for RM300,000 which after one year can be reduced to RM150,000.

Upon approval above 50 years of age Purchase of property

FDI for RM150,000 or proof of offshore Government approved pension income above RM10,000 monthly. After one year, the FDI can be reduced to RM100,000.

Purchase of vehicle

One vehicle (locally manufactured) exempted from excise duty and sales tax or import tax-free for own vehicle (one only).

Medical report

Must be submitted.

Insurance coverage

Applicant, spouse and children must possess insurance coverage issued by any insurance company in Malaysia.

Allowed above the value of RM1mil.

©The Star Graphics

From the Klang Valley to Penang, Iskandar Malaysia to Kota Bharu or Kuantan, the Malaysian property market that has been showing a consistent growth pattern for the past decade, will keep on offering a long-term positive growth trend.

Last advice for all expatriates is to choose carefully, complete a proper due diligence, choose a good lawyer to advise you and if you still have doubts or question marks, do get in touch with this

Malaysian mat salleh.

I’ll be very happy to help and advise. >> Sources: Various reports from the IMF and World Bank, Department of Statistics, Ministry of Home Affairs, MM2H website, MIDA website, REI Group archives. >>REI Group of Companies CEO and co-founder Dr. Daniele Gambero gives presentations on the property market and welcomes feed-back at daniele.g@reigroup.com.my

14

Starproperty.my SundAy 18 MAy 2014

COVER STORY

Hot property: London market heats up with Asian investors Summary of United Kingdom property taxes Owner occupiers/buy to leavers buying through corporate structure

Purchase price

ATED (Annual tax on Enveloped Dwellings)

Stamp duty (%)

JLL’s Adam Challis.

M

any asian investors are following in the footsteps of the trio of Malaysian giants – SP Setia Bhd, Sime Darby Bhd and the Employees Provident Fund (EPF) which have together invested in the redevelopment of the iconic Battersea Power Station in London.

The Channel Islands were the location of choice for the Malaysian trio when they were structuring their investment in Battersea and remain the location of choice for many investors when choosing how to invest and hold property.

“The Channel Islands have a strong reputation for efficient asset holding structures, particularly given their ties with the banking and business community in London,” said Collas Crill (Singaporean office) head of offshore firm Marcus Hinkley.

JLL head of residential research adam Challis believes that there is a misconception about the sort of person who is investing in the London property market from asia.

“We are typically seeing middle and upper middle class buyers. This is not high-net worth money,” he said.

In contrast to Middle Eastern or Russian property investors seeking trophy homes in what are called “golden postcodes” such as Chelsea and Knightsbridge, the motivation of the asian or particularly Malaysian buyer is typically to generate income return rather than capital growth, to buy as an investment rather than a second home, and most specifically as self-investment for their pension.

The nationality of purchasers of newly built residential property in Central London ranges widely.

JLL data from 2013 shows that Chinese buyers represented 6% of the total, of which 17% were from Hong Kong and 11% were from Malaysia. British buyers accounted for only 19% of the total.

However, towards the end of the year and into 2014, the figures have shifted such that domestic buyers make up a much larger proportion of the market today. Taxes may not trouble the sort of person who can afford a Chelsea postcode but they will be a consideration for those with a more modest sum to invest,

Collas Crill’s Michael Morris. so understanding changes in the residential property taxes in the United Kingdom (UK) is as essential as knowing the market itself.

Cynicism in the UK market is that foreign investors “buy to leave” that is, they leave the property empty but in fact, says adam, 90% of transactions are purchases in which the buyer intends to get a market renter, or to allow their university-going children to stay.

Identifying the trends Using the property for rental, rather than locking it up, means that investors will get a better deal from changes in taxes as they benefit from exemptions in the taxes designed to encourage genuine commercial investment.

Malaysian buyers are more likely to buy into regeneration zones outside prime London. Their average budget of £700,000 (RM3.85mil) to £800,000 (RM4.4mil) means that they are typically looking at a very modest, one-bedroom property in a good Zone 2 location, a two-bedroom further out in Zone 2 or a three-bedroom family property even further out in the east.

The student market makes up a small but significant proportion of purchases and, while some Malaysian students take up places in the nearby region, particularly Manchester and Cambridge, the focus is still on London.

Setting the framework So, if you are looking at buying property in the UK, what are the top tips? That depends on your investment objectives.

“Buying into London property is capital growth orientated, while the regional market (areas outside London) reflect income return. It is always prudent to understand your local market – it’s in the interests of the individual to engage with their investment and go into it with their eyes open,” said Challis.

Of course, many Malaysian investors purchase their London property, having visited the city. But many do not and, in common with Hong Kong and Singapore, there is an estab-

All buy-to-let investors Stamp duty (%)

ATED

£500,000 to £1mil (RM2.75mil to RM5.5mil)

15

With effect from April 2016- £3,500 (RM19,250)

4

n/a

£1mil to £2mil (RM5.5mil to RM11mil)

15

With effect from April 2015- £7,000 (RM38,500)

5

n/a

£2mil to £5mil (RM11mil to RM27.5mil)

15

With effect from 2013- £15,000 (RM82,500)

7

n/a

£5mil to £10mil (RM27.5mil to RM55mil)

15

With effect from 2013- £35,000 (RM192,500)

7

n/a

£10mil to £20mil (RM55mil to RM110mil)

15

With effect from 2013- £70,000 (RM385,000)

7

n/a

£20mil and over (RM110mil)

15

With effect from 2013- £140,000 (RM770,000)

7

n/a ©The Star Graphics

Central London development price growth Canary Wharf Central South West End Central North West Central West East Outer River South East North South West West

Core Outer core

0

3

6

9

12

15

18

% change in year to Q4 2013 Source: JLL

lished programme of overseas property marketing in Malaysia, particularly Kuala Lumpur. If you’re investing from abroad and can’t investigate the market first hand, Challis recommends researching the market well to ensure you know what you’re getting into. It’s about doing your research and making sure that you are getting the best advice.

Personal observations Collas Crill partner Michael Morris said that, as non-UK residents, Malaysian investors need to take specialist advice both at home and in the UK to ensure that the relevant property taxes are being taken into consideration.

“Historically, many asian buyers have purchased property by using an overseas company, often incorporated in the Caribbean or the Channel Islands. The reason for doing so was that this limited the exposure to UK inheritance tax, which is chargeable on the UK estate of individuals, whether they are residents or not,” he said.

“The new taxes introduced by the UK government have made that decision more complex. If you

©The Star Graphics

buy UK residential property in an offshore company, and there remain many good reasons to do so, you may face additional taxes,” added the head of the UK property division at the offshore law firm.

Firstly, when buying in the name of a company, there would have been an extension in the amount of stamp duty (paid on the value of the property) which has been increased to 15% for all property worth over £500,000 (RM2.75mil).

However, if you let out your property, rather than locking it up, then you will get the benefit of an exemption from this higher rate and will pay the same amount applicable to an individual, provided that you rent the property for a three-year period. In essence, he said this could represent valuable savings if one wanted to purchase a property now, but perhaps use it in the future, provided that the three-year period is observed. another recent tax is the annual Tax on Enveloped Dwellings (aTED).

This tax was introduced in 2013 for properties purchased in a company.

“This year, the Government also extended this tax and introduced a new annual charge of £7,000

(RM38,500) for properties priced between £1mil (RM5.5mil) and £2mil (RM11mil). next year, with effect from april 1, 2015, the tax will apply to properties priced between £500,000 (RM2.75mil) and £1mil (RM5.5mil). The properties will face an annual charge of £3,500 (RM19,250). an exemption will apply for buy-to-let properties.”

He said that if the aTED applies for example, where the property is not let out, then an additional capital gains tax will also apply.

“With effect from this year, capital gains tax will apply to all properties sold by overseas companies worth over £1mil (RM5.5mil). With effect from april 2015, this tax will also apply to properties worth over £500,000 (RM2.75mil),” he stressed.

Finally, CGT (Capital Gains Tax) will be charged on gains made by non-UK residents disposing UK residential property with effect from april 2015, whether they hold the property in a company or in their own name. This brings the position in line with UK residents who already pay this tax. CGT is, of course a tax on profits made, rather than a tax on the property value.

Challis sums this as “long-term expectations” pointing to the fact that London will continue to perform strongly. “London is the de facto capital city of the globe, and house prices will reflect that and remain high over the long-term.”

For buy-to-let investors, the tax changes will have little impact and the use of an offshore company may still be a useful tool. For owneroccupiers, the taxes may represent a small price to pay for the potential IHT (Inheritance Tax) saving and the privacy that comes from owning the property in a company name. >> Michael Morris is a partner and head of UK property at offshore law firm Collas Crill while Adam Challis is head of Residential Research at JLL, an investment management firm.

Starproperty.my Sunday 18 May 2014

COVER STORY

T

HE latest research by leading real estate adviser JLL unveiled the unprecedented growth and activity taking place in the London residential property market over the past 12 months, analysing the contributing factors that are supporting this demand.

JLL head of residential research Adam Challis comments: “London is currently experiencing a huge upsurge in price growth across all Central London markets, both in prime central London and the outer core.

“Most notable is the increase in values in the City and East London markets where prices have accelerated by 16.5%, ahead of the 12.2% average seen across the whole of Central London.”

JLL’s research also unveils the level of activity in the Riverside submarket as many investing in London real estate rediscover the virtues of waterside living.

As a reflection of this, JLL for the first time identifies the creation of the Central South submarket as the first ever prime submarket located on the South side of the River Thames.

Challis comments: “Inclusion of Vauxhall, Nine Elms and Battersea within our prime definition is more than just a reflection of much stronger residential pricing.

“This decision is based on the changes to the fundamental characteristics that underpin this submarket, including new high value employment and retail offerings that signal a step-change improvement in what it means to live in Nine Elms.”

15

London housing market continues to flourish Central London development price growth forecasts 8.0%

8.5%

8.0%

7.0% 5.5%

UK

5.0

5.5

6.5

4.0

4.5

2014

2015

2016

2017

2018

Source: JLL

©The Star Graphics

Our price growth forecasts for London and the United Kingdom (UK) over the next five years reflect a more optimistic picture for the national market than any other point in the last six years. Mid-single digit price growth is expected across this period, with a small retrenchment in 2017 as a higher Bank of England base lending rate (BLR) begins to increase the cost of

an opinion

By daTuK STEWaRT LaBROOy

IF you want something new, you have to stop doing something old.” Peter F. Drucker.

Lately, I have had a flurry of totally unsolicited SMS messages on my mobile phone asking if I would be interested in buying a unit of the latest condo development in Kuala Lumpur. They all seem to offer the same things – a mandatory view of the Petronas Twin Towers at the KLCC, an infinity swimming pool (we must thank the Marina Bay Sands in Singapore for popularising the concept), a gymnasium, the best location etc, etc.

Some offer “resort style living” which to me means that the location should be on a secluded beach with a spectacular view of the ocean, which is never the case.

To add to the confusion, we are now being asked to buy SoHo (Small office Home office) and SoVo (Small office Versatile office) units, which is an attempt to resurrect the old shop house where you traded downstairs and lived upstairs - a concept that fell out of favour decades ago when link houses were invented.

The traditional link house which has served Malaysian families very well since they were introduced in the 70’s has been the mainstay housing product of the middle-class segment all these years.

However, they have remained static in design over time featuring room for only one car, and a 22 ft x 70 ft configuration that has become the standard norm, although there are now super link (wider) and mini link (narrower) units with the usual standard two to four-bedroom configurations.

Breakthrough designs are happening, but these are reserved for the wealthy and feature three-level homes with lifts and better parking facilities.

However, link houses are land-hungry and developers are turning to dense condominium developments to maximise land efficiency.

mortgages. London will continue to lead all regions in terms of price improvements over the period.

Responding to the recent concerns about the current rate of house price growth in the UK, and particularly London, Challis believes these concerns are unfounded: “Much of this accelerated growth is only taking place in London and this rise in demand is caused by very

unique factors that only apply to London. We simply cannot compare the rest of the UK to this market.

“London benefits from being one of the most influential international cities on the globe, being at the centre of global commerce, political and economic stability and culture.”

Further to this, JLL’s latest Global Cities research report released in March – the Cities Momentum Index - places London only second to San Francisco in its ability to leverage three global drivers; globalisation, urbanisation and the growth of the digital economy.

London’s performance on the Index demonstrates that the city is dynamic and moving forward, regardless of its existing strength.

When analysing the nationality of Central London purchasers of newly built property in 2013, JLL’s in-house data shows that Chinese buyers represented 6% of the total transactions*, while 17% were from Hong Kong, 11% were from Malaysia and 15% came from the Middle East.

British purchasers accounted for

Housing for the future Surveying the housing development landscape, we can see that the old shop/office commercial developments which are the staple of all development projects have barely inched forward in design over the last 50 years – with five foot walkways featuring two-, three- or four-storey walk-up designs which are cheap to build, expensive to buy and hugely profitable.

The only innovation we can see is that these designs are now moving more towards the two-storey designs because it has dawned on the developers that Malaysians don’t like to walk up too many flights of stairs. Many of the older four-storey shoplots have become quarters for foreign workers who are not quite your ideal tenants!

The one thing that is missing from the entire development landscape is a comprehensive demographic study of consumers as well as market research.

It’s the only industry I know that never asks the customers what they want.

Other consumer product groups are constantly conducting clinics, focus groups and national surveys to determine demand for new products.

They also find ways to innovate, bring costs down and try to achieve breakthrough designs.

The property industry assumes that condominiums, link houses and shoplots are all that the consumer will ever want at any price offered. How wrong can they be?

I recently had the opportunity to listen to Dr. Amlan Roy, head of Global Demographics and Pensions Research at Credit Suisse Securities Europe, at a seminar in Hong Kong and wish to thank him for presenting a most insightful paper on “Demographic Trends and what it means for Asian Real Estate?”

He started his presentation by quoting Peter Drucker who said that: “Demographics is the single most important factor that nobody pays attention to, and when they do pay atten-

tion, they miss the point.”

He argues that demographics is about “People as consumers and workers”. It affects income statements and balance sheets of households, corporates as well as countries.

In a chart presentation, he pointed out that there has been a dramatic change reflected in the statistics of those in the 65 to 79 and 80plus-year-old population group.

The 80-plus-year-old population has grown 359% since 1970 and the 65 - 79-year-old population has grown by 163%. By contrast, the 0 - 14-year-old population grew by 35% whereas the 15 - 64-year-old population grew by 124%. Asia has 48% of the 80-plusyear-old population globally.

In Malaysia, we have seen the life expectancy of the average Malaysian rise to 75 years currently, from 68 years as recorded in the 1980’s. Malaysians are living longer.

The three-generation family is quickly becoming a four to five generation family where the grandfather is 95 years old, his son is 72 years old, his grandson is 45 years old and his great grandson is 20 years old, where two out of five are already retirees.

Demographic studies also show that the size of Malaysian households is shrinking.

Those households with five or more persons dropped from 55% in the 1980’s to 45% today.

The number of children choosing to live away from their families is increasing.

Caring for their ageing parents is becoming an issue. In addition to this, we are seeing more families where the wife and husband are both working. Childcare during working hours will become, if not already, an issue when maids become more difficult to secure in time to come.

Do we honestly think that in 20 years’ time, as other Asean countries’ economies boom, that we will still have the luxury to tap into an endless supply of maids to work for us?

To add to the opacity of our collective

19% of the total, supporting the shift in demand that we are seeing as domestic buyer confidence increases. Looking at the London residential property market, he concludes: “The role of international buyers in London remains hotly debated, but it is clear that this flow of capital has been vital to enable new housing supply.

“London offers solid long-term residential investment prospects and increasingly, the development industry is also becoming international as new entrants drive a stepchange in choice for prospective purchasers.” * The information refers to JLL transacted data only, and not the market as a whole. >> JLL is a professional investment management firm offering specialised real estate services to clients.

Operating in 75 countries worldwide, the firm provides management and real estate outsourcing services. >> Log on to www.jll.co.uk for more information.

future, we have the next generation of consumers whom we need to cater to. However, we seem to know very little about them apart from labelling them “Gen Y” or “The Strawberry Generation”. As the Baby Boomers from the 1950’s die out within the next 20 years, they will become the next wave of consumers we need to deal with who are making their choices now on where and how they would like to live.

Are we providing them the products for their generation? I don’t think anyone has even bothered to ask them.

Housing developments need to have quality facilities such as day care for children, maid services to clean up the apartments or houses at least twice a week, laundry facilities, reception areas to receive online ordering of goods by tenants like groceries, handyman services on demand and charge points for electric cars plus two garages.

Self-storage facilities are also paramount as houses are just too small to cater for things accumulated overtime.

Car washing facilities, water harvesting features, energy-efficient homes, geriatric care centres, hospitals for parents if they have Alzheimer’s, dementia or are bed-ridden where they can be visited and taken care of, are some ideas, to name a few.

But, before we start building, we should be asking what our customers want and not just assume that we know. The world is changing far faster than we care to believe.

A foreign developer friend of mine once commented that we did not have much in the way of senior housing in Malaysia compared to other developed nations. I asked him why would that be an issue?

His comment was “Have you noticed how old the guys are over here who drive Porsches?”

Source: “Demographic Trends and what it means for Asian Real Estate?” by Dr. Amlan Roy, head of Global Demographics and Pensions Research at Credit Suisse Securities Europe. >> Datuk Stewart LaBrooy is the chief executive officer of Axis REIT Managers Bhd.

16

Starproperty.my Sunday 18 May 2014

COVER STORY

Financing your overseas property Here’s how you can go about financing your properties abroad effectively by first understanding the step-by-step lending criteria and processes involved.

mortgages

By SuSan CHIn

I

T’S not the having, it’s the getting.”

- Charles Spurgeo.

As with all things in this world, change is the only constant – and the mortgage market is no different.

So, how does one go about financing their overseas property?

Here is a quick guide to financing your new investment overseas, from the things you need to know, to the things you need to have and subsequently, to the things you would need to do.

Getting started For some countries (and maybe individual) regions in a country, an approval from a relevant authority is required where different sets of rules, regulations and prerequisites apply.

Take investing in Australia for example. Foreigners in general cannot purchase residential property without the written approval of the Foreign Investment Review Board (FIRB) which will differ from country to country. Having said that, international property marketers such as Jalin Realty International,

are diligent and prudent in assisting customers in attaining approvals.

They would carefully market property approved for foreign investors.

We can safely deduce that the United Kingdom, Singapore, as with Australia, have high rental markets due to lifestyle choices, turning them into viable locations for Malaysians to invest and build a second home, hence making financing a lot simpler for foreign investors.

Financing process in a nutshell

an eligibility assessment 1quickTake test. Assessments are made and simple via mortgage brokers, such as offered by Jalin Financial Solutions.

aside sufficient funds for 2fees,Set your entry costs, such as legal stamp duty and loan docu-

mentation. You may also consider financing your entry costs.

3

Once the purchase decision has been made, the next step is to source for an ideal financier – or preferably, choose to skip the

Britain is one of the world’s most attractive financial centres, providing an open market to overseas buyers. Seen here is The Shard, London. hassle, and hire a mortgage broker.

International investors have the option to finance either locally or offshore – to each its own perks and prerequisites.

Table 1: Summary of current interest rates of a large number of central banks Name of interest rate

Country/Region

Current rate (%) 0.250

Direction

Previous rate (%)

Change

1.000

12-16-2008

American interest rate FED

United States

Australian interest rate RBA

Australia

2.500

2.750

08-06-2013

Banco Central interest rate

Chile

4.000

4.250

03-13-2014

Bank of Korea interest rate

South Korea

2.500

2.750

05-09-2013

Brazilian interest rate BACEN

Brazil

11.000

10.750

04-02-2014

British interest rate BoE

Great Britain

0.500

1.000

03-05-2009

Canadian interest rate BOC

Canada

1.000

0.750

09-08-2010

Chinese interest rate PBC

China

6.000

6.310

07-06-2012

Czech interest rate CNB

Czech Republic

0.050

0.250

11-01-2012

Danish interest rate Nationalbanken

Denmark

0.200

0.300

05-02-2013

European interest rate ECB

Europe

0.250

0.500

11-07-2013

Hungarian interest rate

Hungary

2.600

2.700

03-25-2014

Indian interest rate RBI

India

8.000

7.750

01-28-2014

Indonesian interest rate BI

Indonesia

7.500

7.250

11-12-2013

Israeli interest rate BOI

Israel

0.750

1.000

02-24-2014

Japanese interest rate BoJ

Japan

0.100

0.100

10-05-2010

Mexican interest rate Banxico

Mexico

3.500

3.750

10-25-2013

New Zealand interest rate

New Zealand

2.750

2.500

03-13-2014

Norwegian interest rate

Norway

1.500

1.750

03-14-2012

Polish interest rate

Poland

2.500

2.750

07-03-2013

Russian interest rate CBR

Russia

7.000

5.500

03-03-2014

Saudi Arabian interest rate

Saudi Arabia

2.000

2.500

01-19-2009

South African interest rate SARB

South Africa

5.500

5.000

01-29-2014

Swedish interest rate Riksbank

Sweden

0.750

1.000

12-17-2013

Swiss interest rate SNB

Switzerland

0.250

0.500

03-12-2009

Turkish interest rate CBRT

Turkey

10.000

4.500

01-29-2014

Source: http://www.global-rates.com/interest-rates/central-banks/central-banks.aspx Data was last updated on April 24, 2014 and is subject to change.

4

Your financial institution or mortgage broker will then proceed to process your loan documentation and you will be well on your way to secure financing.

Lending criteria Individual mortgage providers would have their unique list of lending criteria.

However, common lender requirements for mortgages can be found below: l Affordability requirement: Refers to the investor’s ability to service the loan after deducting all living expenses and liability commitments. l Property types accepted: Certain financial bodies of foreign land might only accept certain property types, such as land and buildings; newly built properties or completed properties, etc. l Regions accepted: Some financial institutions may finance mortgages for properties in selected regions.

Jalin Financial Solution will ensure that all projects sourced are approved by the financier. l Size requirement: Financial institutions in certain countries may only finance a property above a certain size.

For example: In Australia, a common size requirement is that the invested property should be at least 40 sq m (430 sq ft) and above.

l Employment requirements: Depending on the country of invesment, if you are self-employed, a minimum prerequisite for being self-employed is required.

Similarly, if you are employed by others, a minimum length of proven employment history is required.

In summary A common misconception held by many is that home loan applications or financing for overseas properties would call forth countless trips to meet your overseas bank or broker. Today, however, one can simply approach an international property marketing consultant such as Jalin Realty International.

It offers financing services under its Jalin Financial Solutions division, as well as a support network of property professionals from lawyers, to tax accountants, developers, financiers and property management consultants.

They will walk you through a step-by-step process in offshore financing, without the need for you to set foot in the foreign country of investment. Indeed, the world of international property investment can be a whirlwind of disaster if you were to dive in blindly.

There are a million and one things that one would need to learn, understand and consider.

However, with all that has been said, the best headstart one can employ, would be to approach a trusted international property professional who is well-versed in the international property arena.

With this, you can be rest assured that your life will be enhanced and improved, enabling you to reap the benefits of what you sow. >> Susan Chin is a mortgage manager with Jalin Financial Solutions.

Starproperty.my SUNDAy 18 MAy 2014

F E AT U R E D D E V E L O P M E N T

17 STAR THE OPERTY PR

1

2

L&G: Building value for tomorrow

By NURUL HANISAH nurulhanisah@mystar.com.my

L

AND & General Bhd (L&G) is definitely not a newbie in the property market. Originally incorporated on May 21, 1964 under the name of Nanyang Holdings Sdn Bhd, L&G was formerly known as General Lumber (Holdings) Bhd. The company later changed its name to L&G Bhd in 1991. This was after it underwent changes in its major shareholding structure and core business.

In Jan 2008, the company, under the new management led by Low Gay Teck as managing director, took over the helm. Since then, with new measures put in place, L&G moved forward by actively engaging in the property investment and development business. The company also ventured into other businesses which include the cultivation of rubber and oil palm, management of club activities, ownership of a school building complex and the provision of education services.

“L&G has come a long way. From the 70’s to 90’s, L&G was one of the more, if not most, prominent property developer in town. The company handled some big projects, one of which is the very successful Bandar Sri Damansara township that won The International Real Estate Federation (FIABCI) Award under the best township category in 1996,” enthused Low. The company faced its share of challenges from the year 2000 until the end of 2007. During this time, it went through some financial difficulties and its property development business became stagnant.

“At the end of 2007, there was a change in the controlling major shareholder, and I came on board in early 2008. Under the new management, our aim is to become leaner and stronger as a company. Our common goal now is to venture into property development again, but more aggressively so.

“We paid off our outstanding debts by disposing some of our assets

3

4

Land & General Bhd, the developer behind the Bandar Sri Damansara township celebrates its 50th anniversary. while retaining some suitable ones for our future developments. Since then, we have been launching our new projects and are working on upcoming developments,” he said.

L&G’s first project that took off under its new management was 8trium@Sri Damansara, an integrated corporate office suites and retail development located in Bandar Sri Damansara, Kuala Lumpur.

Following that, the company worked on a series of other property developments including The Elements located off Jalan Ampang, Kuala Lumpur and the Damansara Foresta situated in Bandar Sri Damansara.

The Elements - Embracing a modern premier lifestyle In 2011, L&G launched its exclusive residential serviced apartment called The Elements with an estimated Gross Development Value (GDV) of RM800mil.

The Elements showcases a modern lifestyle surrounded by lush greenery. This freehold development sits on 2.6 acres (1.05 hectares) of land comprising two 42-storey tower blocks. Out of The Elements’ 1,040 units, 80% are in the range of 520 sq ft to 1000 sq ft while the remaining 20% are units sized from 1,435 sq ft to 1,570 sq ft. The units are priced approximately between RM800,000 and RM1.5mil. Since its launch, 96% of the units have already been sold.

“We have a dual-key concept for the 1,435 sq ft units. The master bedroom in any of these units is large enough to be used as a small serviced apartment,” shared Low on the development’s key selling points.

Each tower has its own sky garden which oversees the spectacular view of Ampang and the Kuala Lumpur City Centre. The in-house facilities here include two Olympic-sized swimming pools, a children’s play

area, an indoor gymnasium as well as a floating gymnasium which sits within one of the swimming pools.

“As 80% of our units are small in size, we have provided a fullyequipped formal dining space at the designated facilities area which is located on the sixth floor. Here, owners can rent the area to hold gatherings or small functions,” said Low.

Staying close to nature in Damansara Foresta Damansara Foresta features an abundance of greenery which relates to its tagline “Home within nature”.

This freehold, luxurious condominium comprising four towers will be launched in separate phases.

Phase one of Damansara Foresta which was launched in 2012 with a GDV of RM800mil has recorded a take-up rate of about 95%.

This entire development sits on 43 acres (17.4 ha) of land located adjacent to the Bukit Lanjan Forest Reserve. Only 22 acres (8.9 ha) will be developed while the remaining 21 acres (8.5 ha) will be retained as a natural green lung surrounding the development.

Residents of Damansara Foresta will enjoy pristine views of natural greenery surrounding the development along with the breathtaking sight of the Petaling Jaya city skyline.

“Our vision for Foresta is to create a contemporary home within the ‘cradle of nature’. I don’t think there are similar projects which has a forest reserve behind the development as well as 21 acres (8.5 ha) of surrounding natural greenery,” he said.

Damansara Foresta features threebedroom plus three-bathroom units ranging from 1,400 sq ft to 1,600 sq ft which are priced approximately between RM800,000 and RM1mil. All units come with two parking bays.

Facilities provided in Damansara

Foresta include an Olympic-sized swimming pool and wading pool, a pavilion, dance room, indoor games area, multipurpose hall, mini theatre, sauna and rooftop garden.

Additional features include a skywalk, tree houses and also a hammock garden beside a nature pathway where residents can walk about.

8trium, Sri Damansara’s high-rise office suites Spanning over 2.65 acres (1.07 ha) of land, this freehold business centre comprises two towers. Each of the 21-storey towers come with office suites and retail outlets.

8trium is also the current location of the L&G headquarters.

This development features excellent in-house facilities such as wireless internet broadband connectivitiy and a swimming pool.

8trium is poised to be a thriving business hub of Sri Damansara for many reasons, stated Low. “8rium is also the first project that we launched under the new management, thus it is symbolic to the company,” he said.

Situated at a strategic location, 8trium grants easy accessibility via major highways like the DamansaraPuchong Expressway (LDP), New Klang Valley Expressway (NKVE), Middle Ring Road 2 (MRR2) and the Kepong-Sungai Buloh highway.

In the near future, the Mass Rapid Transit (MRT) system will also be located adjacent to the building which will increase the value of the development.

Future developments Venturing into other areas besides the Klang Valley, future plans for L&G include converting a 200-acre (80.9 ha) golf resort into a residential township in Tunku Jaafar, Seremban.

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Residents staying at The Elements can take a dip in the swimming pool, work up a sweat at the gymnasium or have a chit-chat at the cafe.

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An artist’s impression of The Elements located off Jalan Ampang.

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Low invites the public to participate in L&G’s 50th anniversary celebration.

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The viewing deck at Damansara Foresta is a great place to unwind and be at one with nature.

This development will comprise freehold terrace houses, semidetached units and cluster homes.

L&G hopes to launch this project with an estimated GDV of RM550mil soon.

In Putrajaya, the company has an investment portfolio of a Multimedia Super Corridor (MSC) status office building which will be completed within the next six months. The units are not for sale, but will be rented out to potential business owners.

“Over the last few years, the company worked on a few active projects. Currently in the pipelines, are new projects that will be launched in the later part of the year.

“You can see our company’s growth chartered out from 2008 onwards until now. Also, in terms of revenue, the company has grown exponentially,” he said.

Yet to be named, L&G will be unleashing its newest gem in the heart of the city in the form of a new development project. Located right next to The Elements development in Jalan Ampang, this new serviced apartment will sit on 5.7 acres (2.3 ha) of land. This development will comprise four 45-storey towers. In total, there will be 1,000 units.

“We are excited about our new project. We will be creating a living concept close to nature incorporating almost four acres of greenery within the development,” Low concluded.

Starproperty.my Sunday 18 May 2014

SPACE DESIGN

18 STAR THE OPERTY PR

A certain esprit du lieu

StarProperty.my speaks to one of Taman Weng Lok’s newest residents, French architect Michael Gibert, about why he chose to live in this cosy neighbourhood and what he likes best about it.

By aIMEE CHOOn aimeechoon@starmedia.my

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hen asked why he chose to live in Taman Weng Lok in Kuala Lumpur, French architect Michael Gibert who is the founder of Arkilab said that his motivation was simple. he just wanted to own a home in Bangsar.

“Since I arrived in Malaysia, I have lived in Bangsar,” he said.

Then, after living and working here for three years, he decided to buy a house of his own, and Bangsar 1

seemed to be the obvious choice.

“I have been looking around. I was interested in Bangsar but have also searched areas like SS17 and SS16 - comparing the prices, basically,” he said.

Finally after sifting through nearly 30 different properties, Gibert struck gold with a quaint two-storey townhouse in Taman Weng Lok, and soon fell in love with the neighbourhood and its community.

Gibert’s home combines old Malaysian architecture with simple, modern design.

“We left the building almost

untouched and close to its original state,” he said, explaining that he tried to keep the renovation of the house to a minimum, as he wanted to keep as true to the design of the original house as possible. even the doors and louvered windows were redone to resemble the original Chinese-styled ones.

“The front door and windows were damaged so I couldn’t keep them. I tried to keep them, but I couldn’t. The hinges were totally rotten and the wood attacked by termites. So I’ve redone them, but they’re designed similar to the original.” however, the interiors of the house had a distinctly modern, western feel about it – from the polished cement floors to the

simple white furniture with a few accents of red.

“At first, I was more interested in the house than the neighbourhood. Of course, it didn’t take me long to realise the neighbourhood was filled with pretty well designed houses. Strolling about, you realise why the area is referred to an architect’s village,” Gibert observed. he said this in reference to the other architects and landscape designers, including ng Sek San of Seksan Design, who have made Taman Weng Lok their neighbourhood.

“It’s very lively too, with a pleasant social diversity here actually, it’s quite mixed,” he said of the neighbourhood community.

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Gibert attributes this to the fact that the cost of property and rent in the area is relatively reasonable in comparison to other neighbourhoods in Bangsar.

“For the price of a one-storey house, I could now purchase a twostorey, which is much more comfortable to live in,” he said.

Chee Su-Lin, another recent owner who has bought into the neighbourhood, also cited the relatively affordable price as the main reason she and her husband decided to purchase a property in Taman Weng Lok. “It’s cosy,” she said.

“And, the fact that other architects and designers are nearby, is an added bonus,” she concluded.

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Gibert at the front porch of his home in Taman Weng Lok.

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Gibert lives with his wife and son in this community-centric neighbourhood.

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Gibert restored the patio at the back of the house to its original state.

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a mother bird has also chosen this tree grown in the courtyard of Gibert’s home to build her little nest.

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The interior of the house is designed in a simplistic manner with polished cement floors and mostly white furniture with a few accents of red.

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In order to restore the original patio, Gibert had to undo renovations made by the house’s previous owners.

– Photos by NORAFIFI EHSAN & AIMEE CHOON

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Starproperty.my SUNdAy 18 MAy 2014

F E AT U R E D D E V E L O P M E N T STAR THE OPERTY PR

By NURUL HANISAH nurulhanisah@mystar.com.my

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ATRIX Concepts Holdings Bhd, a Seremban-based developer, continues to build upon its reputation of developing residential projects in various parts of Negri Sembilan (Seremban), Port Dickson, Bahau and Johor Bahru. Growing its Gross Development Value (GDV) per project from RM20mil in 1997 to more than RM100mil in 2004, Matrix Concepts is especially known for developing affordable houses.

In line with delivering quality affordable housing in Seremban, Matrix Concepts’ latest launch of its Balista Link Homes with a total GDV of approximately RM200mil is located within the township of Bandar Sri Sendayan that has a total GDV of approximately RM5bil.

These spacious 22’x80’ homes each come with a built-up area spanning of 2,735 sq ft.

Each unit is fitted with four bedrooms, four bathrooms, living and dining areas as well as dry and wet kitchens.

According to Matrix Concepts managing director and chief executive officer Datuk Lee Tian Hock, “About 50% of the target market for the Balista Link Homes consists of upgraders from Kuala Lumpur and the Klang Valley. Most of them are owner-occupiers and families seeking spacious homes with reasonable pricing.”

Among other targeted buyers are young executives, upgraders and property investors.

The majority of the house buyers are purchasing for their own stay. There are also upgraders from the nearby neighbourhood.

Since it was launched in January 2014, Balista Link Homes have recorded a take-up rate of 40%. The selling price for each unit ranges from RM498,000 to RM1.2mil.

Type A1 comprises 208 units while Type A2 comprises 159 units. These double-storey link homes are priced from an average of approximately RM180 per sq ft which is competitively priced when compared to other developments around the vicinity.

“All in, for Balista, we have about 367 units which we are selling parcel by parcel,” he added.

Contemporary architecture Each unit of the Balista Link Homes is complemented by 2’x2’ porcelain tiling in the living and dining areas, which is also seen in all the four bedrooms as well as the dry and wet kitchen areas.

Besides that, all units have built-in thermal reflective insulation to ensure that the homes are kept cool at all times.

In addition to this, each unit is equipped with seven air-conditioning points, seven fan points, four water heating points and a threephase electricity power supply.

Balista: Where serenity and tranquillity meet

Matrix Concepts Holdings Bhd introduces its contemporary Balista Link Homes located within the township of Bandar Sri Sendayan in Seremban.

Balista Link Homes (top) will be surrounded by greenery (bottom pic) and are targeted at families wanting generous space and affordable pricing.

School following the national Kurikulum Standard Sekolah Rendah (KSSR) and Kurikulum Standard Sekolah Menengah (KSSM) curriculum.

These schools are aimed at providing a comprehensive and global education to develop the students’ intellectual, physical, emotional and spiritual development right at the heart of Bandar Sri Sendayan.

The aim is to incorporate 21st century learning methodologies that will provide a holistic education for students to make it in the real world.

Safety and security Residents of Balista Link Homes are assured peace of mind as the development incorporates well-equipped security features. There is only a single entry and exit point for these homes.

Besides that, a guardhouse is built to ensure all activities on the premises are well-monitored 24/7. The development is also designed with a high-security perimetre fencing to ensure its residents are safe and secure living here.

Community living at its best Residents here can enjoy the facilities offered at d’Tempat Country Club @ Sendayan, a premier business and family country club.

This three-storey club will be located on a 6.33-acre (2.56 hectares) piece of land with a built-up area spanning approximately 485,000 sq ft. Expected to be fully operational by the end of 2014, the club will cater to the recreational and business needs of the residents as well as others who are staying at Bandar Sri Sendayan.

The club will offer facilities including an Olympic-sized swimming pool, children’s pool equipped with play area, aqua gymnasium, fully-equipped gymnasium, 10-lane bowling alley and four indoor badminton

Convenience and connectivity

courts. As part of the continuous environmental awareness programme undertaken by the company, and in line with its “go green” policy, the club will be designed in compliance with the Green Building Index (GBI) standard.

The company is targeting a GBI gold rating standard for the club.

Other facilities include a television room, children’s playroom, reading room and a VIP holding room. Food and beverage outlets within the club include a seafood restaurant, banquet hall that can accommodate 800 people, Japanese restaurant, coffee house, bar lounge and a bowling alley snack bar.

A spa area, hair and beauty saloon, arcade room, convenience shop and bowling accessories shop are other offerings at the club.

Educational hub Matrix Concepts will be introducing Matrix Global Schools, a fully integrated

private national and international school modelled after the British residential school concept.

Built on 20 acres (8.09 ha) of land, this campus will provide a wholesome learning experience with facilities such as auditoriums, lecture theatres, music rooms, recording studios and a sports complex.

There will also be a performing arts centre and a huge multipurpose hall equipped with indoor badminton courts that can accommodate 1,000 students.

A separate sports complex will cater to outdoor activities such as rugby and football on the grass field. Other activities include wall climbing and kayaking.

The Matrix Global Schools will include the Matrix International Pre-School, Matrix International School (offering the International General Certificate of Secondary Education (IGCSE) - University of Cambridge O & A Levels) and Matrix Private

There is a wide range of modern conveniences and amenities within nearby distance of the Balista Link Homes to cater to its residents’ needs.

These include the Sendayan Green Park, schools and petrol stations.

The hospitals, shopping centres as well as a fire station are also located nearby.

Accessibility to Kuala Lumpur is made viable with the Kajang-Seremban Highway (Lekas), North-South Expressway Central Link (Elite) and North-South Expressway (PLUS).

Additionally, there will also be future plans for another highway that will connect Senawang with Kuala Lumpur International Airport (KLIA).

If one prefers public transportation, there is also a half-hourly commuter train operating between Seremban and Kuala Lumpur. >> For more information, please contact 017-2683855 William or 017-2682455 Yin Lin. >>Website: www.1sendayan.com or Facebook: www.facebook.com/matrixconceptshomes

Sunday 18 May 2014

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Starproperty.my SuNdaY 18 MaY 2014

OVERSEAS SPACE DESIGN STAR THE OPERTY PR

By WILLY WILSON

C

OMPARED to Shanghai’s ultra modern district of Pudong, Xintiandi in China is a low-slung village.

Located right at the centre of Shanghai’s French Concession, Xintiandi is arguably the most successful redevelopment project in China to date.

A popular urban tourist destination, Xintiandi sees modern architecture and historical buildings stand side by side across its 129 acres (52.2 hectares) of land.

The historical buildings in Xintiandi is known as Shikumen (which literally means stone gate), a special form of residential architecture unique to Shanghai.

Built on narrow alleys at the turn of the 20th century, Shikumen houses are typically two-storey buildings, with a stone gate that frames a wooden front door and a small, enclosed courtyard.

Developed mainly by foreign companies – Shanghai at that time was a cosmopolitan city boasting a myriad of architectural styles – Shikumen houses were built with Western technique while retaining traditional Chinese sensibilities.

“I was fascinated by the spatial structure of these Shikumen houses; how the level of privacy changed from the north side axis and east/ west axis. The architecture was a vernacular style that I had never seen before with some French motifs and organic elements,” says Benjamin Wood, an American architect who was hired in 1998 to revive Xintiandi, then a dilapidated area with rundown Shikumen houses.

He was one of the four architects invited to Shanghai by Vincent Lo of Shui On Land, a Hong Kong-based property conglomerate that had just won the right to develop the historical site.

Wood, then based in Boston, penned his ideas on a seven-page proposal to Lo, persuading the tycoon to retain the old structures and to keep the buildings, arguing that its unique architecture is a reminder of the city’s rich historical background.

He even made a comparison between Xintiandi with the fortified medieval town in Tuscany, which apparently struke a chord with Lo, who happened to have just returned from a holiday in the charming Italian town.

Launched in 2001, Xintiandi has quickly become an icon, with hip restaurants, bars, boutiques, coffee shops and a cinema that draws in at least 100,000 people a day. Now, 13 years on, Xintiandi continues to be a top destination in Shanghai.

The crown jewel A mirrored-glass monolith may seem a tad ostentatious in a complex where Shikumen houses and cobbled alleys bump up against leafy public parks. But, in the case of the Langham Xintiandi, it isn’t all modern architecture blasé.

Designed by New York-based Kohn Pedersen Fox Associates (KPF), the building in which the Langham Xintiandi operates from pays tribute to the surrounding area as well as Xintiandi’s inventive and innovative architectural achievements.

“We wanted to ensure that the hotel related well to the largely low-rise architecture of the surrounding Xintiandi area.

Stylised surprise

This fiercely modern structure in Shanghai draws inspiration from the city’s unique Shikumen architecture.

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The Langham Xintiandi night view from Madang Road.

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a typical stone gate at the entrance of the Shikumen.

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“Xintiandi is a stunning example of restored traditional Chinese architecture. We wanted the building to honour this masterpiece of architectural expression,” says KPF principal Paul Katz.

Built as twin buildings, the 24storey tower curves gently to create an elegant profile. The identical building next door is occupied by Andaz, Hyatt’s new line of trendy boutique hotels.

The building was originally designed for Conrad Shanghai, which had pulled out from the project following the 2008 economy crisis. The Langham, a luxury hotel chain from the United Kingdom, stepped in and took on the project in 2010.

The window pattern is highlighted using grey Chinese granite, making it visually arresting. The pattern itself borrows inspiration from traditional Chinese latticework during the Han Dynasty.

The grey Chinese granite, according to Katz, mirrors the renovated grey brick Shikumens and their carved stone gates.

The result is a fiercely modern structure but unmistakably Chinese, reflecting both Xintiandi’s and the Langham’s brand values, past legacy, individuality and style.

“The aim was to design a property which advances the city’s new

role as a global hub of commerce and culture, while echoing the vibrancy and prosperity of the Han Dynasty,” says Katz.

“The curved walls and unconventional exterior latticework create distinctive window configurations that produce a wide variety of views over Xintiandi, allowing unique experiences for return guests. A total of 2,900 windows were individually handcrafted and fastidiously fitted,” he adds.

Insider deal Like KPF, interior designer Peter Remedios was initially hired to doll up what was going to be Conrad.

When Shui On Land Limited’s Vincent Lo, who was a minority shareholder of the project, struck a deal with Langham, Remedios was invited back to continue where he left off.

“The initial design (for Conrad) was funky and whimsical. But Langham is very different – it is more conservative and formal.

“The challenge was how to take an almost finished project and transition it through this rebranding exercise,” says Remedios to Sleeper magazine. Xintiandi’s colourful past indeed inspired Remedios in his interior work.

This explains the use of dark and

polished Chinese granite for the floor and the walls in the reception area. It is hard to separate the architecture from the interior works, and Remedios wanted it that way.

“The overall look is seamless, with walls sweeping from the exterior to the interior with the glass elements wrapping right around. We use soft, cushion-like forms so that you never know where the architecture ends and the interior begins,” he says.

The shapes and forms inside are designed to emulate and to sync with the rounded corners and edges of the structure. In keeping with the Han dynasty inspiration, Remedios repeatedly used horse graphics – an important symbol during the height of the Han dynasty – throughout the hotel. It subtly appears in the lobby’s granite flooring as well as on the columns in the form of a bronze sheath cut-out. The horses are accented by an equally authentic paisley motif, etched into a series of bronze beams.

From afar, the motif looks almost like the bark of a tree. Another noteworthy interior piece is the

Charming cafes and high-end boutiques.

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Modern pieces inspired by Xintiandi’s rich heritage.

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The Langham’s Chuan spa moon gates.

– Photos by WILLY WILSON & courtesy of THE LANGHAM XINTIANDI

atrium’s three-story chandelier, which consists of some table lamps.

Upstairs, the 357 guestrooms are less experimental in terms of design, although they still maintain a rich material palette.

The walls, for instance, confidently expose rich leather inlaid with a stitched-on geometric pattern inspired by the building’s exterior.

The rooms present a mixture of tasteful riffs on dark wood and lacquered surfaces. The suites are unflaggingly luxurious, but my no means are they cold and stiff. I had the privilege of visiting the presidential suite frequented by Chinese superstar Fan Bing Bing.

Just like the lobby, the rooms provide welcome variation and a healthy dose of wit, thanks to the clever mix of modern furniture, sleek work spaces, ultra-modern toilet and eye-catching carpets.

The carpets in the rooms are dominated with green and gold, with Han-inspired, paisley-like motifs all across. Such a sophisticated take on traditional Chinese aesthetic is indeed refreshing.

Starproperty.my SuNdaY 18 MaY 2014

COVER STORY

23 STAR THE OPERTY PR

By YVONNE YOONG yvonneyoong@thestar.com.my

I

T seems like it was just yesterday when I first set eyes on Sandra Knuyt’s playful, vibrant and colourful paintings at the Bukit Pantai bungalow in Bangsar, Kuala Lumpur which doubled up as an art studio where she once stayed with her husband Patrick Van Neck.

Inspiration was found everywhere be it in the huge peacock painting at the dining area where Patrick whipped up servings of freshly brewed designer coffee, or from Sandra’s series of portraits depicting the fours seasons of a woman’s life spring, summer, autumn and winter.

All these paintings and the Andy Warhol-inspired pop art inscribed on the commissioned table transformed the living area into a temporary art gallery of sorts.

Her paintings were filled with a life of their own – some depicting humour, while others verged on being satirical – with an assortment driven by graphic-like renditions.

The carefree couple, as I always remember them to be, has always maintained this sense of joie de vivre.

Belgian by descent and global in outlook – considering themselves citizens of the world, the Peter Pan couple are anything but conventional.

Sandra used to be an account director for an international advertising agency while Patrick was once the general manager for Volvo before ditching their jobs for a carefree life – with her painting and him, managing their art business together.

Thereafter, the couple shifted their base to Bukit Antarabangsa which they considered the “Hollywood Hills of Kuala Lumpur”.

They bought over a two-storey terrace and hacked down wall after wall, turning it into a three-storey abode with a breathtaking view of the city.

Taking centre stage was an infinity pool perched at the far end of the living room.

Their need for an open concept space connecting with the outdoors was made possible as they had a gallery at Shangri-La, Kuala Lumpur to showcase the artwork. That was until the couple decided to start a new life on the Turks and Caicos Islands to embrace the azure blue waters.

“It was the same sense of adventure that made us come to Malaysia and leave as well, maybe with one additional twist that we wanted to breathe pure air all the time and be within a mile from an unspoilt beach with crystal clear waters. It was hard to face the concrete jungle of KL again as we started longing for our island again the moment we arrived back in KL after each visit. That was the turning point,” reflected Sandra.

“Although we do not regret leaving Malaysia, we still miss it.

Malaysia was home and will always feel like home to us. If we would ever go back, we will fit right in again. I guess expatriates leave a piece of their hearts in the places they really loved and can always revisit those places with great memories,” she opined.

La isla bonita Caving in to their wanderlust for travel and adventure, the couple’s new life showcases the best of island living.

“When we moved to the Turks and Caicos Islands, we decided to focus on real estate on a small scale of single family homes.

A life less ordinary

Leaving footprints in the sands of time as they travel around the world, this couple traded Kuala Lumpur’s hectic traffic for the clear azure waters of the idyllic Turks and Caicos Islands which they now fondly call home.

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The view from one of the villa’s master bedrooms overlooking the pool.

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The pristine living room complemented by Sandra’s coral painting.

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Sydney, the St. Bernard from SPCa, KL having a whale of a time here.

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Outdoor dining is a breeze at the serene Turks and Caicos Islands.

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an idyllic lifestyle beckons at the sunken outdoor bath of this villa.

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Patrick and Sandra have traded city life for island living.

“We purchased a piece of land, built on it and then rented out the property. I think the fact that we name each of our houses is proof of that personal commitment and touch,” she related.

Patrick handled the structural design, exterior and interior layout while Sandra oversaw the styling of all of their vacation villas – addressing the choice of materials, colours and decoration.

“Patrick uses the Google programme ‘Sketchup’ to create 3D designs as well as to visualise the workings of the inter-related spaces.

“You can place your house within its future environment via the connection to Google Earth, simulate the virtual sunset and sunrise while sitting at the virtual house,” she said.

Everything is thought out – from the orientation of the house to catch the breeze, to the design that blocks out the hot sun at all times, while providing safety and security during the hurricane season.

Being near a crystal clear bay with powdery white sand just a few steps away, is an added bonus.

The first of the villas, Buddha Villa,

sits on 0.75 acres (0.303 hectares) of land and comprises a four-bedroom house with a pool and also a separate two-bedroom guest house for rent.

When they first arrived, they moved straight into this villa which they later renovated and built a gazebo by the pool.

“The beach environment really inspired our zen interiors, accented with bright orange, red, blue and green colours. Nothing can beat the ocean view with its turquoise and blue shades. You can just design your interior around it, so the ocean pops out like it is on a canvas.

“The themes of my decorative art are beach-coastal living inspired by corals, shells and flowers,” she said.

Villa Blanca was next on the couple’s agenda which they designed and constructed in 2010, following their purchase of a large piece of land on a ridge by the beach.

This breezy two-bedroom vacation villa has fabulous ocean views from every room and is only 30 steps away from the beach via a private path.

“It was ready and rented out by the winter of 2012. Our high season runs from end of November to May

while the hurricane season starts from June 1 to Nov 30. Patrick chose a concrete roof, since hurricane protection is a must here. The first thing that will fly in a cyclone is the roof, so why not build a concrete roof – safe as a bunker!

“It was a new concept – only two other houses have it here on the whole island. It turned out to be a great choice and we feel very safe during a hurricane,” shared Sandra.

Villa Blanca is a contemporary boutique hotel suite built within the privacy of the guest villas.

It is also the perfect getaway for couples and honeymooners to enjoy a tranquil holiday with spectacular ocean views and tropical sunsets from the wraparound covered terrace and fresh water plunge pool.

Then, there is Villa Imani, the project currently under construction located on the eastern side of the island within the only gated community.

The property comprises a four-

bedroom house with a large pool, deck and cabana, plus a studio guesthouse with a large garage.

She said that once completed, the property will be put on the longterm rental market as it is in a hotspot area for expatriates.

There are future plans for a villa development facing the oceanfront with a boat dock and private beach located at Silly Creek on the south side of the island. The villa development will be rented out to tourists.

“Last year, we bought another plot of land on a hill, with a great sunset and ocean views.

“The water comes right to our doorstep, so we are drawing ideas to build another four-bedroom tourist house there that will have its own small private beach and a boat dock,” she enthused.

The upsides of living here are evident.

“You can stroll to the beach and be immediately in a five-star holiday environment. Tourists can only spend two weeks a year here, but for us, it is our backyard.

“There is an interesting social life here, because this island is full of expatriates from various countries.

We also have friends who own holiday homes and condominiums here fly in regularly from the East Coast of the US. The tourists also spice up the scene,” enthused Sandra.

The only downside is the “silly hurricane season” because nothing really happens during this hot period when everyone wants to cool down by the ocean or pool.

Besides the tourist shops, there is no shopping here so islanders need to fly out to Miami or New York to get their annual shopping done.

The doting couple believes that travelling helps keep up a positive spirit – opening their minds to other thoughts and ideas for a better understanding of the world.

“We feel that the different encounters, places, cultures in life help us to have a better ‘helicopter’ view, understand why relationships and situations are what they are and become what they become.

“It’s about a better understanding of cause and effect plus a better understanding of time as a universal force to work with, instead of to work against,” she shared.

These days, Sandra keeps her painting for the decorative aspects of their home and villas.

“I still paint my cigar ladies and portraits, when I am commissioned to do so. For now, The Turks and Caicos Islands give us a pristine, high-end, Caribbean paradise with the clearest waters and powdery white beaches we have ever experienced in the world.

“But maybe one day, we may have other needs again. We can pull out a map and make another big move,” laughed Sandra.

Sydney, the St. Bernard adopted from the Society for Prevention of Cruelty to Animals (SPCA) in Ampang, KL who is an important part of the couple’s life, couldn’t agree more.

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