Property Malaysia

Sime UEP are reported looking to abroad and also to launch residential buildings that are more in demand to cope with a lacklustre property market. This was announced recently during their AGM in Petaling Jaya recently. Some of the countries they looking to move into are Australia, Indonesia and Vietnam.

Locally, Sime UEP are the developers of UEP Subang Jaya (USJ), Ara Damansara and Putra Heights.

According to the report in the Star, their MD Jauhari Hamidi said,

Sime UEP would be juggling some of its planned launches, whereby it would bring forward the launch of residential properties in demand and defer the introduction of properties that had flooded the market.

‘’We are trying to launch products in segments that are not saturated,'’ he said, adding that much of the land the company owned or managed in Subang and Ara Damansara was for commercial purposes.

He said the saturated portion of the market was the medium-range segment, where homes were priced between RM200,000 and RM300,00 a unit.

Further one, it was also reported that

Jauhari said Sime UEP had a big land bank but the bulk of it would only be commercially viable for development between five and 10 years.

With only about 1,000 acres suitable for development within the next five years, he said the group was working hard to get more land. For that, it has been in talks with landowners or companies that own tracts of land in suitable areas and has allocated about RM150mil to buy land or companies with land.

For the full report, check out this article.

The news started coming through this morning that Malaysia’s First Lady, Datin Seri Endon Mahmood, has passed on.

Property Malaysia would like to extend our deepest condolences to our Prime Minister Pak Lah, family and friends for this great loss in the holy month.

As a mark of respect, there will be no postings on Property Malaysia for the rest of the day.

Other news:
Reuters UK
ABC News International

We’re quite lacking in the ‘Knowledge’ section of this website, so we’re doing an entry on mortgage.

We found this excellent article by EDinformatics.com.

So what is a mortgage?

A mortgage (Law French for “dead pledge”) is a device used to create a lien on real estate by contract. It is used as a method by which individuals or businesses can buy residential or commerical property without paying the full value upfront. The borrower (called the mortgagor) uses a mortgage to pledge real property to the lender (called the mortgagee) as security against the debt (also called hypothecation) for the rest of the value of the property. In legal terms, the creation of a mortgage gives the legal title of the land to the mortgagee and an equitable title (called “equity of redemption”) to the mortgagor. The legal title, however, only exists as a security for a debt and does not convey any title or powers associated real property.

The website has more interesting write-ups on the history of mortgage, the mortgage finance industry, mortgage loan types, fixed rate mortgage calculations and even a section on Islamic mortgages.

For the full article (including a glossary of mortgage-related terms), check out the site.

This sort of uncharacteristic for Property Malaysia to be reviewing a development like The Peak@Taman TAR, we’re usually doing linkhouses and condominiums/apartments. But we’re not ones to underestimate our readers, so we’re proud to review this super-exclusive development with bungalow lots for sale, which will be launched this weekend.

The Peak by Berjaya Land is located quite deep in the established township of Taman TAR in Ampang. To get there you turn off from Jalan Ampang or the MRR2 and drive past some existing link houses until the end of the road where you pass the Kelab Darul Ehsan and an awesome mansion owned by the royalty. But once you enter the gated enclave into the vast site, you can finally see the enormity of the project. And if you’re lucky enough to get a plot at the edge of the hill or at the very top, you’ll be greeted with one of the most breathtaking views of the city you’ll ever find (short of staying at the top of KLCC).

Perhaps the view alone may be able to sell the private plots themselves, but bungalow land in prime location within the city is not something that comes round every year (if you’re a multi-millionaire, that is).

Some parts of the site is cut out from solid granite rock, which is evident if you actually see the place for yourself.

Buying bungalow lots is exclusive domain of the super-rich, price of the land is one thing, building the beautiful mansion usually matches or exceeds the cost of the land. Most likely double the land cost, actually. But undoubtedly, there are many, many ready buyers out there for this project… So if you’re interested, drop by this weekend.

The mention of Kota Damansara evokes a wide spectrum of responses. The newest growth hub of Petaling Jaya, boasts of lots of new and exciting commercial and residential projects. For shopping there is the Curve, Ikano Power Centre, Ikea, Tesco and the new GSC cineplex building. Then there is the booming commercial areas like Dataran Sunway and Mutiara Damansara.

As for residential, there are just too many to mention here. From linkhouses, to posh bungalows to towering condos like in Damansara Perdana.

Today we review Opal Damansara, the latest condo project by the Sunway Group, who has a large presence in the area.

The big question about Kota Damansara is the double-edged sword thing. Prime location & prestigious address, but horrendous traffic jams in the area. Weekdays, its the peak hour traffic. Weekends, its the shoppers. Most of the new developments are concentrated along the densely populated Persiaran Surian (where Opal Damansara is situated), and exits routes are either through the NKVE, LDP (includes to the Kerinchi Link), or through Damansara Indah to Tropicana/Sony. All the exits, we emphasize ALL, are heavily jammed up during peak hours, ESPECIALLY the tunnel at Damansara Perdana (turning back to PJ). We know for sure, because one of Team Property Malaysia worked there for 5 years until recently.

The least congested route at the moment (and this is in relative terms, really) is the exit to NKVE, but at the cost of paying a hefty toll and jams again at all the exit points of the highway within the Klang Valley. Unless, of course if you exit at Lembah Beringin. Or Nilai. There is another exit to Sg Buloh at the end of the road, but it is frequented by lorries. Sprint is building an interchange at the Damansara junction, but we feel this would only add to the traffic at the tunnel. Plus, the expected toll is not cheap either.

But what really attracts the thousands of homebuyers to this place DESPITE these problems? Because, like we said, this is boomtown and prime location. And investors are making good returns on their money. Really good money. Just like Bandar Utama was 10 years ago. Just look at the prices Armanee Terrace and Metropolitan Square sold at.

Opal however, is not as extravagantly priced. Starting at about RM381k per unit, this still seems comparably cheap in Kota Damansara, but still more expensive when compared to the likes of Sterling@PJ or Tiaraville. There are two towers, Block A was launched earlier, and Block B was launched today. One half of the site is common facilities, the other half are the two blocks. In between, you have some green spaces, and two pools. Actually, there isn’t much facilities to speak of, or just the basics. Perhaps one reason for this is that there are some surface parking on site (usually developers try to avoid this) but they offer 2 parking per unit, and most of them are in the below the common facilities, so we can understand the lack of space. (In fact looking at the site layout, they seem to be squeezing parking at every available nook and cranny around the perimeter)

They are marketing this place as a ‘semi-D condo’. What’s that, you say? Beats me, we’ve never heard of it, either. But looking at the layout, we assume that they are referring to the fact that each unit shares a party wall with only one other unit, although there are 8 units per floor. So it’s basically, it’s like the ‘every unit is a corner unit’ concept. Ah well, another entry into our “new contradictory property phrases coined by developers”.

There are a variety of units for sale in this low density development. The ground floor has a duplex unit, which makes it an easier/harder sell, due to people walking right past your unit. There are also penthouses, but we didn’t get any info on them. For the most common units, there are two sizes, Type A at 1,421sq.ft and Type B at 1,145sq.ft. There are slight variations to each design, but they are generally the same.

We were quite pleased with the 1,421sq.ft unit, it is well designed with some good points. The maid’s room is detached from main living spaces, there is a generous kitchen and yard. The 3 rooms are quite large, but we could have done without the balcony and a smaller a/c ledge. But small grievances. We like the design.

The smaller 1145sq.ft unit seemed cramped for us, and the corridor into the rooms is oddly shaped ‘L’, wasting precious space. Bad design. And sacrificing the balcony would have definitively made the living/dining bigger.

At the time we viewed it, there were many units still available for both Block A & B. The Sunway group are old-timers when it comes to property development, and in the past couple of years they seem to be going through a resurgence in prominence after the economic slowdown.

So what else can we say? Good investment, it will surely appreciate in value in a year or two.

One more thing we have mention though, is the two paragraph marketing introduction printed on gatefold brochure. It seemed they tried to cram every possible property marketing buzzword and cliché into the 100 words there, like ‘romantic’, ‘haven’, ‘tropical beauty’, ‘craftmanship’, etc. We’re used to some overused superlatives by the marketing execs, but this one deserves a special exaggeration award.

We were driving along the Sg. Besi – Puchong highway when we noticed new banners on the light poles (yes, that primary property launch advertisement method…).

It turned out to be the latest Bandar Kinrara launch, entitled ‘Harmony’. No, it’s not the latest boyband from New York, its link houses. In Malaysia.

For a thorough review of the entire Bandar Kinrara, including access, facilities, quality, and pricing of the development, check out overall development review here. We strongly recommend you read that article first (if you haven’t already done so) before reading this one.

So we turned into Bandar Kinrara (BK) at the interchange with the giant golf ball landmark and followed the bright new banners. Depending on banners and no signboards can be a risky thing, you can miss a turning.

Anyway, we found the project site, where they were doing piling and ground beams. The location is just off the road to the golf club, where all the prestigious expensive bungalows are located. This project site is not too bad, there are some higher ground and forest surrounding it.

So we then scooted off to the I&P sales office at BK5.

‘Harmony’ is actually phase B43, with 7 rows of linkhomes set out in 4 side roads. For this current launch, only 66 of the 132 units are up for sale, which is 6 blocks of houses. There is one basic layout for all the units, with a few minor variations here and there, plus the end and corner types, there are actually 6 different types. Of one basic layout. Anyway.

We suppose they’ve gotten linkhouse design down pat, since they’ve successfully launched so many phases. Driveway can comfortably accommodate two large cars side to side, at the expense of a garden patch. Most families straightaway tile up the green to make way for parking anyway, so this might suit them. The entrance to the house is alcoved in. The living is well spaced, but the dining is not. As a trade-off, there is a dry kitchen, and a rather small wet kitchen. The maid’s room is quite big, and is suitable even as a study or guest room.

Upstairs, not much comments, The master bedroom is large, And the two other bedrooms share a small attached bath. One plus point here is that, with the exception of the end and corner units, there aren’t any balconies for the unit, which is good, since we don’t fancy it. Another thing to note here is that end lots here, have a narrow side garden (a bit like a truncated corner unit), unlike the end lots of other developments where there is zero setback.

As we have delved in our development review of Bandar Kinrara, the excellent facilities (read about it here) and location is the prime selling point of the units. Plus it freehold ex-estate land, the price reflects these points. Therefore the price range, RM338,327 to RM541,541 may be beyond the reach of the average housebuyer.

This is the second Development Review (check out the first one on Bandar Puteri here), and it is on Bandar Kinrara. This isn’t a regular new launch review, we will first look at the overall development of Bandar Kinrara, which will kick off a series of postings on the latest launches in this Island & Peninsular flagship project.

Island & Peninsular has made for itself a huge name in Puchong as a middle- to upper-class developer. The flagship development, is of course, Bandar Kinrara near Bukit Jalil. This huge development is actually held under its subsidiary Perumahan Kinrara Berhad, and is set on the former Kinrara estate land and was famous for it’s military camp and hospital. PKB is actually jointly owned by Lembaga Tabung Angkatan Tentera and Lembaga Tabung Haji, hence the military connection.

I&P bill themselves as the “Largest Property Developer” in Malaysia in terms of landbank, after their merger with Golden Hope. Some of their other projects are Alam Damai in Cheras, Alam Sutera in Bukit Jalil; Taman Inderawasih in Seberang Prai; Taman Sri Nibong and Desa Mutiara in Penang, and the luxurious Bayu LakeHomes in Pajam and Kota Seriemas in Nilai, Negri Sembilan.

Let’s get back to Bandar Kinrara (BK). There are two portions of BK that most people know, the older portion near Bukit Kuchai & the military camp, and the newer phases on the other side of the highway, near the golf course (oh wait, don’t get confused, there are many golf courses in the area). Both these portions are clearly separated by the Sg. Besi-Puchong highway, or more commonly known as the Astro road (it ends at the Astro office and the Selangor Turf Club).

With that highway so easily accessible, there is a good network of roads connecting the area, namely the LDP, Kesas, NKVE (a bit off, but still not too far) and even the North South Highway. Some people may argue that the Sg. Besi-Puchong highway is slowly getting chocked due to the recent increase in traffic, but a toll-free highway is better than no highway at all.

There is even a newly constructed dedicated interchange for BK owners near the two Shell stations along the highway.

As for the development, BK has a good mix of everything. There are cheap houses, mid-price linkhomes and semi-Ds, and a whole array of luxury homes for your picking. But when it comes to amenities, BK will show its true class. There are many schools everywhere (last count 17, not including the reputable independent Chinese school Yak Chee nearby). Then of course there’s the 18-hole BK Golf Course (with tennis courts and a swimming pool), an 18-acre sports complex (they even have cricket and rugby facilities), well planned out commercial centres, mosques, police station and plenty of petrol stations (very important fact overlooked by some developers!)

Most of the luxury homes are near the gold course, and the other types are spread either southward to the South Link Expressway or eastward to Technology Park Malaysia.

For freehold ex-plantation land, it obviously does not come cheap. The current launches are quite premium priced, but for a maturing township, it generally reflects the available facilities in the pricing.

(On a side note, Bandar Kinrara has one of the best ‘goreng pisang’ (fried banana fritters) stalls in the whole Klang Valley! )

Again, the best way to experience Bandar Kinrara is to see it for yourself.

Some of the launches reviewed by us in Bandar Kinrara are:
Harmony (22′ x 75′ linkhouses)
9@Kinrara (22′ x 75′ linkhouses)
Damai@Kinrara
The Oasis
Spektra (9A4)

UPDATE January ‘07: For the latest site photos, check it out here.

Looks like the good times keep rolling on for SP Setia. They have just won another award, this time it’s the Best Property Developer in Malaysia in Euromoney’s inaugural Awards for Excellence in Real Estate 2005.

This was reported in the New Straits Times recently. According to the report,

The financial magazine’s inaugural survey aims to recognise high quality and consistent performance in global real estate activities. The survey methodology was designed to evaluate real estate practitioners based on quantitative and qualitative criteria according to geography and area of services.
Real estate practitioners in over 50 countries were polled under six award categories including developers, property managers, real estate advisory firms, commercial bankers providing capital to the real estate industry, investment banks with real estate services and investment manager with specialist real estate funds.

Looks like Malaysia’s Top Developer (voted also by the Edge Magazine) is gaining reputation in the overseas press, which is all too important for the international market.

We also hope that the other developers in Malaysia take it as a challenge to catch up with SP Setia by improving their quality, products, service and management.

Errant and irresponsible developers, beware.

The Star ran a cover story on rogue building developers who cheat buyer of their money and how the Housing and Local Government Ministry is catching up with them.

To date, 96 companies have been caught, of which 16 of them are unlicenced developers who openly cheat buyers by appearing to sell houses in building sites.

According to the report:

Thirty-two of those facing court action did not comply with awards and decisions of the Home Buyers Claims Tribunal, and 80 other developers are being investigated for the same offence.

The ministry has also slapped 519 developers with compound fines for failing to submit housing progress reports twice yearly, for violating advertisement regulations and other compoundable offences.

Recently, one of the 16 bogus developers challenged a house buyer to lodge complaints with the ministry despite knowing scores of developers are facing court action and that some had already been convicted.

For the rest of the article, read it here.

What is interesting to note is that a related article mentions that most of these cases are developers based in the Klang Valley.

Another interesting fact - there are currently 4,500 licenced housing developers in Malaysia. Wow, Property Malaysia has a long way to go, man…

Island & Peninsular Bhd (I&P), known for their massive flagship mixed development in Bandar Kinrara, has sold two parcels of land to the GLC Lembaga Tabung Angkatan Tentera (LTAT). The 50.26 acres leasehold land, was previously held by I&P’s subsidiary, Perumahan Kinrara Bhd (PKB), at a cost of RM57.6 million or RM26psf.

This was reported in the New Straits Times recently.

According to the report,

However, the sale price was determined at RM26psf, which is lower than the market valuation but higher than the price of RM17.75psf, or RM39.31 million, PKB paid to acquire it from Pembinaan Efektif (M) Sdn Bhd in 2003.

The proposed disposal is in line with the company’s strategy to sell certain land to speed up development of its landbank. It is also an attempt to fund the group’s expenditure for existing and new projects.

This is a prime land earmarked as ‘building land’ and we will definitely see some development in the next two years in this two plot of land.