Property Malaysia

Everybody wants to be a property developer these days. It’s common for contractors like IJM and Gamuda to branch out into the sector as a form of diversification, and to protect their income during lean years. Now even small contractors are trying to get in the game, usually with a heavy obligation to the bank.

It has also become common to see corporations who are in businesses not related to real estate to start dabbling in it, just like Mah Sing and Acmar. Last year we came across this clothes manufacturer launching a housing project.

Then there are also small timers who are mainly deal in trading and investments trying to score on a piece of land to enter the all-lucrative property game. Almost every month I come across some of the companies like these. Some are serious and have done their homework, some have literally no idea when it comes to development. But ambition and a vision is a good thing, having financial backing is even better.

Money is perhaps the most important resource to have. Without it, you will be paying your head off to the bank, affecting your selling price and image as a developer. And development is far too many hidden costs that most newcomers don’t realize – holding costs, authority contributions, etc.

Perhaps it’s a sign of the maturing market, or it be a warning of a overheating economy, I don’t know. But as most industry insiders will tell, property development is a long term commitment. To succeed, you need to look at the bigger picture of good performance over 10 years or more. That’s what all the big players today have done to come this far.

Most of you would have seen the large spread advertisement in the major newspapers by SunCity (Sunway City Berhad) promoting a gamut of their existing projects on sale. There was a an opening ceremony over the past weekend held at all their projects’ show houses, and this current promotion will be held for a month until July 18. They’ve thrown in some freebies to draw in the buyers, you can check with the respective sales people for the details.

SunCity seems to be targeting Bumiputera buyers with this promotion, probably as a means to improve the sale of their remaining Bumiputera units. From the looks of it, there are plenty of projects all over the Klang Valley for buyers to choose from, with a variety of products from apartments to linkhouses to shoplots to luxury bungalows.

A list of the featured products (with details) are given below. For full details, you can visit this website.

SUNWAY DAMANSARA
General Info:
No. 2, Jalan PJU 3/22 Sunway Damansara
47810 Petaling Jaya, Selangor.
Tel: 03 - 7805 2020

Parkville Townhouse
1,937 sq.ft.
25’ x 80’
From RM358,999.20

Laman Impian Garden Townhouse
2,142 to 2,142 sq.ft.
25’ x 80’
From RM389,599.20
Tenure: Leasehold
Expected Completion: Sept 2007
No of units: 20

Opal Damansara
1,140 sq.ft
From RM290,260
You can read our full review here.

Bungalow D’Villa
5,198sq.ft.
55’ x 80’
From RM2,176,200.
Tenure: Leasehold
Expected Completion: June 2006
No of units: 13

Dataran Sunway Shop Office
4,950 to 13,200 sq.ft
22’ x 75’ and 44’ x 75’
From RM1,240,200.

******

SUNWAY ALAM SURIA
No. 1, Jalan Pulau Angsa U10/1H
Sunway Alam Suria, Seksyen U10
40170 Shah Alam, Selangor.
Tel: 03 – 7845 5637

Villa Suria Semi-D Link
From 1,863 sq.ft
30’ x 65’
From RM317,025

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SUNWAY KAYANGAN
Two-storey superlink
From 2,204 sq.ft
30’ x 60’
From RM317,025

******

SUNWAY BATU CAVES
No. 2, Jalan SM7 Sunway Batu Caves
68100 Batu Caves, Selangor.
Tel: 03 – 6185 5520
Tenure: Leasehold
Expected Completion: August 2007
No of units: 104

Emerald (Double-storey linkhomes)
1,794sq.ft.
20’ x 70’
From RM297,495.

Sunway Cheras
No. 27, Jalan Emas 3, Taman Emas Cheras
43200 Cheras, Selangor.
Tel: 03 – 9076 3131
Tenure: Freehold
Expected Completion: April 2007
No of units: 111

Double-storey terrace house
1,709sq.ft.
20’ x 65’
From RM315,000.

2 ½-storey courtyard house
2,605sq.ft.
22’ x 70’
From RM387,000.

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SUNWAY KINRARA
Double-storey terrace house
1,668sq.ft.
20’ x 65’
From RM343,065.

******

SUNWAY RAHMAN PUTRA
Super-link courtyard house
3,400sq.ft.
26’ x 95’ and 27’ x 95’
From RM666,949.

A friend of ours, who’s a big manager in a decent sized property firm, has decided to temporarily put on hold the launch of this bungalow and semi-D project they’ve been working on for more than a year now. They had initially planned to launch this project some time in August, or thereabouts. We were actually looking forward to this launch, they’re known for impressive (but not over-the-top) show houses.

We were just talking with him over the weekend, and he mentioned this when we asked him if the launch date has been set. He didn’t really divulge all the reasons why he’s decided to scrap the planned launch, even though he has already obtained his Building Plans and other approvals. He only mentioned that ‘timing is not right’ and ‘may wait a year or two and see first’ and that they’ve also decided to concentrate instead on another piece of land they own, which they are developing cheaper link houses.

We’ve actually seen the plans to these proposed semi-D and bungalows, and by our reckoning, they seem to fall in the luxury niche market, probably starting at about RM800k to RM1mil. Of course, this is our estimate, and had they decided to pursue to launch and sell them, they may have set the pricing differently. The project is on a small piece of freehold land just outside the city.

As far as we know, the issue of financial problems is out of the question, their earlier projects sold reasonably well and they also have interests in manufacturing.

Anyway, we didn’t discuss much about it, since these things aren’t free information to be thrown around. With forecasts of the market for higher end projects to be softening, perhaps it’s a good idea for them to adopt a ‘wait-and-see’ approach. Anyway, these guys are seasoned developers, they probably know a lot better than laymen.

Once again we take another break from local properties to look at some international luxury islands for sale. This few private islands were featured in Forbes magazine, we also did an earlier feature a few months ago (you can read it here).

Obviously, the average Malaysians won’t be able to afford a island by yourself (unless you’re Datuk Michelle Yeoh…!) but we can always look and dream, can we?

Isla de sa Ferradura, Spain
USD$39million
This 14-acre island lies just of the coast of Ibiza and featrures a dramatic white hacienda. Ferradura can be reached by yatch or by car, since it’s connected to the mainland by a small private road.

Baja Island, Mexico
USD$35million
Large enough to accommodate several large hotels – or a private compound amid 35,000 acres of solitude – Baja has a number of beaches and a consistently balmy climate.

Caritas Island, Connecticut
USD$25million plus
Convenience and seclusion come together in Caritas, a 4-acre island just off the Connecticut coast. Members of the Phelps Stokes family built the grand stone mansion in 1906.

Blue Lagoon Island Resort, Fiji
USD$25million
Ringed by a tranquil lagoon, this 225-acre island is home to coconut crabs, giant clams and a mostly finished luxury resort.

For more international luxury islands getaways, check out here.

So, Petaling Jaya is going to be a city next Tuesday.

The media has been vigilant in highlighting a few key issues (and problems) that MPPJ are facing in recent months. So, it would come as no surprise that the celebrations will be muted and less-extravagant, while general folk of PJ are more concerned with the current World Cup.

I remember about 15 years ago when Johor Bahru was declared a city, there was a month-long celebration, with carnivals, performances and what-nots, but Petaling Jaya will definitely be different. Petaling Jaya is a town with heart, that is for sure. Everyone of us here in Property Malaysia has spent a majority of their adult lives at one time or another living and working in this ‘satellite town’ (as our geography books call it).

There was an article in the Star Metro a few days ago, highlighting the issues of the day, like:

• Increase in assessment taxes last November. Residents pro-tested and said the increase was unjustified.

• Calls from resident groups for the detailed accounts to help explain and justify the council’s expenses were ignored.

• MPPJ Sports and Cultural Club selling books produced by MPPJ (which is an offence because no money due to the council can be channelled elsewhere) to billboard advertising revenue that remains unaccounted for.

• unknown persons leaked out council documents to resident leaders. The documents detail an attempt to privatise billboard licensing to Seni Jaya Sdn Bhd and points out that approval was already given despite the councillors not having signed their approval.

There are also other issues that come to mind, like the case of the PJ Exchange, rubbish collection, hawkers and stalls occupying roads, etc.

Chronology of events

Nov 8, 2005 - MPPJ approves increase of assessment by 10% for most properties in PJ for next year.

Jan 16, 2006 - Residents protest increase, citing RM60mil worth of assets still unaccounted for, as reported in the Auditor-General’s report for 1992 and 1995.

Jan 23 - Residents declare increase illegal as no justifiable reason was given beyond MPPJ president Datuk Ahmad Termizi Puteh’s assurance that the increase was necessary.

Jan 26 - Kampung Tunku assemblyman Datuk Dr Wong Sai Hou announces that council accounts will be be revealed to the public.

Feb 14 - Residents formally request for full set of accounts for the years 2000 to 2005 and other relevant documents via a memorandum.

Feb 28 - Termizi rescinds Dr Wong’s offer for the accounts and says residents can look at the Gazette (government publication) for the general accounts.

March 6 - Residents show proof of wastage by pointing to rubbish bins sponsored by MPPJ that purportedly costs RM1,000 each. Four such bins were sent to parts of Damansara Jaya and Taman SEA.

March 8 - Residents produce evidence of impropriety where the MPPJ Sports and Cultural Club issued receipts for a book that was produced by MPPJ.
March 13 - MPPJ holds a briefing to explain to residents why accounts could not be revealed. Residents reject the explanation.

March 23 - Residents reveal that MPPJ does not have a clean bill of accounts as shown in the Auditor General website and the council’s accounts have not been published in the Gazette since 1999.

March 29 - MPPJ finally reveals their summarised accounts to residents for a brief period of two hours and thirty minutes. Photocopies were not allowed. Residents made handwritten copies of the accounts.

March 31 - Residents reveal the facts they gleaned from the accounts, which includes RM38.6mil in arrears that was accrued from 1999 to 2004 (that figure has since increased to RM50,686,417 as of Feb 28 - source: www.mppj.gov.my)

April 11 - Residents issue memorandum to MPPJ to explain account’s findings.

April 26 - MPPJ does not respond to the memorandum. PJ residents give committee mandate to pursue matter. Several outsiders carrying placards in support of MPPJ disrupt the meeting.

May 8 – Star Metro reveals the nature of illegal billboard advertising and the millions that it can cost MPPJ in uncollected licensing revenue.

May 10 - State assemblymen Yong Dai Ying, Dr Wong and Datuk Dr Lim Thuang Seng urge the council to take action against agencies over the illegal billboards.

May 17 - Poly Dimension Sdn Bhd attempts to build a pedestrian bridge in Section 10 PJ, citing approval from the Public Works Department. MPPJ enforcement team, led by MPPJ legal advisor Abd Muttalib Mohd Ali stops the project. MPPJ councillor V. Subramaniam accuses Muttalib of siphoning off money from billboard advertising (Subramaniam has yet to make good on his promise to tell all).

May 20 - Section 10 PJ residents say they do not want the pedestrian bridge and that consent was not sought.

May 31 - Termizi confirms a newspaper report that the council was mulling the possibility of awarding a single consortium advertising rights for areas under its jurisdiction.

June 8 - PJ residents reveal that unknown persons have leaked out council documents. The documents reveal that approval for a proposed privatisation of outdoor advertising licensing to Seni Jaya Sdn Bhd for 15 years was given to the company, despite the councillors not having signed their approval.

June 9 - PJ residents formally hand over a memorandum demanding answers on all the issues raised to date.

June 13 - MPPJ responds with a two-page letter, but residents dissatisfied with the answers. Residents to file police report tomorrow

This is another launch set in the 930-acre site of Bandar Puteri Puchong. Some of the earlier and current phases which are still available which we have reviewed here in Property Malaysia are as follows (click on the links to read the reviews):

Elyssa Villa
Nadia
Nadia 2
Eugenia
Lilac (22’ x 75’ linkhouses)
Aseana Puteri (condominiums)
Bayu Puteri (apartments)
Grande View (22’ x 70’ hilltop linkhouses)

For our review of the whole Bandar development, you can check out this posting, where we touch on the location, accessibility, quality and corporation behind Bandar Puteri:

Development Review: Bandar Puteri by IOI Properties

(we strongly recommend you read this overall development review before proceeding).

Nadia is set in Puteri 11 atop the hill overlooking the rest of the development, and further beyond into the Klang Valley. While it is not at the edge of the hilltop where you get a panoramic vista (like Grande View), Nadia is set more inside, bordering the Bukit Hitam Forest Reserve. With the reserve, the exclusivity of the area will be maintained for some time, givn that it would most probably not be developed in the near future, as with the case of the top of the line Elyssa Villa.

There are 208 units, altogether. While most regular Bandar Puteri visitors will say that this is just the latest series of terraced home, with just a slight variation in internal layout and façade, there are some differences here, some subtle, some obvious.

For a start, there are 2 and a half storeys, giving a slightly larger build-up of 2,628sq.ft. With the additional half floor, you get another family lounge and a bedroom and attached toilet (which both are quite big). The lower floors are almost similar to some earlier unit types. Porch is wide enough to park two cars.

With number of phases left to be launched dwindling, and as Bandar Puteri itself gets more populated and fully developed, it is only inevitable that the pricing of the last few phases be much higher. This is true for Nadia, with the additional factor of the freehold land status, ready available commercial areas, ready built accessibility. The developer has boosted up the floor space to better control the pricing upwards, but it also gives more options to homebuyers who are looking for a bigger space.

The developer is giving away some freebies including a home alarm system with ‘smart home features’, please check with the salespeople for further details.

Recently, there have been a few complaints of regarding quality of workmanship in Bandar Puteri homes, especially in the entry market level landed homes and But as for this top of the line Elyssa series, the quality that they have promised is the best, consummate to the price you’re paying.

Right. The Property Malaysia administrator and all the frazzled contributors are taking a short deserved break in Honolulu some obscure Malaysian resort. So for today, we’re doing something different, we’re answering commonly asked questions about owning and buying property. We’ve been asked these question dozens of times, so we’re answering them for the benefit of those who are dying to know.

And while we’re rolling in the sunny seas of the fabulous Malaysian coastline, you can actually send us your questions, if you have any. Just leave a comment, or send us a mail.

(Disclaimer – due to the harmful effects of the sun and salty seawater, we cannot vouch that everything we answer here is 100% the gospel truth…)

I’ve bought a condo property about a year ago, but when I passed by the project site the other day, I can’t see any up above the hoarding! I can see a lot of construction vehicles and workers going in and out, but how come there no structure up?!
I dunno, maybe the contractor found some gold or diamonds in the ground and are secretly busy mining it first? No, actually if it’s condo, they’re probably been working on the foundation and basement (if there is basement). This is of course, assuming the developer has actually obtained all approvals and there isn’t a stop work order in place. Normally, a highrise building’s foundation takes up to a year to complete, and the actual building about one a half years. That’s why the handover is always taken to be 36 months, as opposed to 24 months for landed units. We’re not ruling out the discovery of gold, though.

I want to enter the project site to check that the developer is building my RM1,356,898.49 (after discount) super deluxe house properly, but the security guard wont let me in!!! Why are they being secretive and difficult? I have a right as a buyer to see it, right?
My goodness, you paid RM1,356,898.49, and they call it a ‘super deluxe house’? Anything above RM1.2million should at least be called a ‘villa’ or ‘tropical paradise’ (depending on the location…). And they’re not wrong either, the law says you can’t simply enter a construction site without proper certification from the likes of NIOSH and CIDB. But if you’re really dying to see your beautiful RM1,356,898.49 home, you can actually get your developer to arrange a special visit (frankly, this only works for homes more than a certain value. Any cheaper homes the developer will politely tell you to go fly kites…). Besides, the developer can’t be spending all their time entertaining 259 buyers who want to see their uncompleted homes every other week…

The S&P document my developer gave me is kind of thick. Should I read it? I can’t usually finish a page of a novel without falling asleep (except for Harry Potter)…
No, don’t read the S&P, trust your developer 101%. Just don’t come whining later saying your developer cheated you on this and that. Seriously, check everything before signing. Even if you have to drink espresso to keep awake while doing it. If your England not powderful, get someone who knows about this stuff to do it, like your lawyer or Chinaman contractor friend. It’ll save you a lot of heartache later. Remember, don’t sign until you’re 100% satisfied about what you’re getting.

Okay, now you ask the questions. And we’ll answer them the next time we go on holiday. Which will be sometime soon… I think…

We were driving along the LDP in Puchong one day and noticed new white banners hanging on the lamp posts, so it can only mean one thing – IOI Properties have launched another phase in their sprawling (and much talked about) Bandar Puteri.

This is the latest in the many phases of units available in the massive Bandar Puteri development. We have reviewed most of the currently available phases recently. For our review of the whole Bandar development, you can check out this posting, where we touch on the location, accessibility, quality and corporation behind Bandar Puteri:

Development Review: Bandar Puteri by IOI Properties

The other phases reviewed here are as follows (click on the links to read the reviews):

Elyssa Villa
Nadia
Nadia 2
Eugenia
Lilac (22’ x 75’ linkhouses)
Aseana Puteri (condominiums)
Bayu Puteri (apartments)
Grande View (22’ x 70’ hilltop linkhouses)

This is probably the top of the line when it comes to the many, many phases of Bandar Puteri, mainly due to the large build-up, large land area, hilltop location, and more importantly, it is situated next to the Bukit Hitam Forest Reserve, affording a good view of the greenery. There are no plans by the government to develop the Forest Reverse, at least for the moment.

There are 58 units located at the end the exclusive enclave known as Puteri 9, where Eugenia (another series of luxury bungalows) and Aseana Puteri (luxury condominium, almost completed) are also located. The units are arranged in three rows, with at least 7 corner units with super large compounds (a minimum of 50’ x 100’), but obviously with an accompanying super large price tag.

Of the 58 exclusive units available, there are only 2 types of layout to choose from, although with the mirror image choice, you may count them as 4 in all. The build for 2 and a half floors is 4,420sq.ft, which is quite small for the large plot size. This is mainly due to the larger garden and driveway provided, trading off with the smaller building footprint. There are 7 bedrooms and 6 baths provided, suitable for large 3-generational families to live here (including the maid). There are also family 3 lounges, one on each floor. With this, they have given a small double-volumed family area on the ground floor. Most Malaysian families usually like large living rooms to lounge around and watch TV, so we’re thinking most buyers here will renovate the living by extending the garden terrace.

Two of the bedrooms on the first floor share a bathroom, perhaps they should have provided separate attached baths. After all, if you’re providing 6 baths, what’s one more so that you’re kids don’t have to share?

The façade a modern-styled, similar to a lot of other projects of this price, e.g. in Desa Park City and Alam Sutera.

The developer is offering some free stuff with the purchase, please check with the sales people.

Elyssa represents the best on offer in Bandar Puteri at the moment, and while Grande View has the awesome panaromic view, here you have the forest view and exclusivity of the enclosure. Price is a different issue, though.

Recently, there have been a few complaints of regarding quality of workmanship in Bandar Puteri homes, especially in the entry market level landed homes and But as for this top of the line Elyssa series, the quality that they have promised is the best, consummate to the price you’re paying.

UPDATE: Please read our review here.

The Andaman Group will be having a soft launch for the Cova Villa in Kota Damansara at the following time and location:

June 10 & 11, 2006 (Saturday and Sunday)
11.00am to 5.00pm
Cova Villa showroom at Jalan Teknologi, Taman Sains Selangor 1, Kota Damansara.

For more details, you can visit their website, or call 03-6157 3366.

We’ll do a full review once we get to see the place.

Now this is an interesting project. We have actually seen them at various property exhibitions over the last 12 months, but after we heard that the physical works at site had commenced and the sales office and show unit were up, we decided to drop by for a visit.

Bukit Ikhlas is located along the Putra Permai Highway (or as some people call it, the ‘Puchong-Seri Kembangan Highway’) where the Pasar Borong Selangor is located. The exact site is between the existing Taman Universiti Indah and the Seri Kembangan Business Centre. The latter is a cluster of recently completed shop offices.

The site itself is quite big, about 25 acres, cut out from forest land. From what we can see on the ground, the soil looks pretty good, and they have terraced the hillside (don’t worry, it’s gentle slope) to accommodate the rows of units.

Just an observation, we noticed the scale model of the development did not truly reflect the levels of the actual site, but we can’t be sure until the units are up.

Bayan Villa is 370 units of 4-storey town villas, and we’re quite impressed that the developer has chosen such a different type of development for their maiden project. This plot of land, with the existing terrain, could easily been development as a high end gated luxury semi-D and bungalow project or highrise condominiums / apartments. But they have chosen a less beaten path, providing 3 types of units – ‘Dual’, which is a small two bedroom unit, a larger 3+1 apartment, and a duplex.

As we mentioned, the villas rise up to 4th floor only. On the ground floor, there are the small ‘Dual’ units. These homes actually take up only half the block footprint, the other half is reserved 6 spots of tandem parking bays. While Bayan Villas is arranged in many parallel row, each block has only 2 rises of units, 8 units in all. There is a lift serving these 8 units, meaning every floor shares it with one other unit.

The Dual units is spartan in layout, only 840 to 890sq.ft in space. There are 52 units in all, but it comes with a garden. This beautifully landscaped common garden is one of the highlights of the development, it forms a strip of green between the rows of units, where the units face one another. It’s a little hard to describe here, but once you see the site plan, you appreciate the design. Dual units cost from RM170k to RM211k. The second bedroom is small.

Next up is the 1,340-1,457sq.ft unit, with 3+1 rooms. These can be corner or intermediate units, located on the 1st to the 3rd floor. There are some limitations in the intermediate units, due to the lack of ventilation. We definitely recommend the corner units, if they are still available. Prices range from RM228k to RM285k. There 264 units available.

At the top floor, you can find the duplex units (2,098 to 2,242sq.ft, RM354k to RM381k, 52 units). With one and a half floors, it actually is a combination of the ‘dual’ and ‘3+1’ unit, the lower floor has the same half unit – half parking area and garden terrace.

Each units come with two parking bays, and membership to the pretty comprehensive clubhouse. The lift should be a convenient attraction, no ones wants to climb 4 floors of staircases everyday, not at these prices, however health conscious you are. The clubhouse has all the bells and whistles, with the additional of sports facilities. Security features also looks quite good.

As mentioned earlier, the landscaping is set to be the main attraction of this place, in addition to the unique product on offer. The garden / courtyard feature looks very interesting, especially considering you can get the dual unit from RM170k onwards. Lake Edge in Puchong is offering an almost similar concept (just the garden part, not the rest of the development), but the prices there are on a totally different stratosphere. The developers are also planning to do up the entrance and other water-themed landscaping features in a big way. One of our associates are familiar with the developers, who have development experience in previous companies. They are set on making a name in the niche market by offering distinct products. Which explains the unexpected low rise villa concept. The area is showing good growth potential in recent years, fuelled by the student rental market from nearby universities.

There is a plot of land next to the clubhouse earmarked for future development. From the looks of it, it should be an apartment or some other higher density mass market product, to capitalize on the lower density attraction of Bayan Villa.

The developer is giving some freebies packaged together with the unit, please check with the salespeople for details.