Property Malaysia

Found this interesting article some time back but didn’t get to post it up until now.

IKEA, that furniture megastore that everybody loves, has previously successfully launched a series of pre-fabricated apartment homes that come out of a box, just like their popular furnishings. It’s cheap, and easy to install (i bet a lot of allen key screws are involved…!)

They are now planning to launch this product in UK, called ‘BokLok’ (smart living). It looks interesting, although it probably won’t work in warm countries like Malaysia. Read all about here.

Okay, that’s it, we’re closing shop as far as reviews for this month, April 2007. The few reviews waiting in cue to be finished and posted will be done so in the coming week of May. April has been a good month for reviews, totalling 7, not including those in the aforementioned queue. Traditionally, March - April is the best time for developers to launch new projects, i.e. after the Chinese New Year.

As usual, they’re all updated in our reviews page.

Suria Residen, Cheras
Bandar Kinrara: Spektra (Phase 9A4)
Sunway Cheras: Phase 2B &3, Cheras
Impian Meridian, USJ1
Empire SOHO, Subang Jaya
Iringan Hijau, Ampang Hilir
The Oasis@Cheras Courtyard Terraces, Cheras

Interesting read, for those into global economy and spillover effect into our country.

Home prices fall at fastest rate in 13 years

WASHINGTON (MarketWatch) — U.S. home prices continued to fall in February, with prices down 1.5% in 10 major cities compared with a year ago, according to the S&P/Case-Shiller home price index released Tuesday.
Home prices depreciated year-over-year for the second straight month, falling at the fastest pace since late 1993.
A year ago, prices were rising 14%.
In 20 major cities, prices are down 1% in the past year, the biggest decline ever in that series that dates back to 2000.
“The deceleration and declines in home prices are showing no signs of turnaround,” S&P said in a release.
Prices will probably continue falling, said Goldman Sachs economists in a research note. “We expect [the index] to be down about 5% by the end of 2007. If anything, it’s getting there a bit faster than we anticipated,” they wrote.
Prices fell year-over-year in 13 of the 20 cities, led by Detroit (down 7.8%), San Diego (down 5%), Boston (down 4.7%) and Washington (down 4.3%).

You can read the full article here.

If you’ve been following the property market these past few months, or have been following the ads in the papers, you’d know that there has been a few launches in this particular area of Cheras, near the Hulu Langat forest reserve surrounding Taman Kemacahaya, Chempaka International and Venice Hill. Some of the projects include Sunway Cheras, Hijauan Residence and One Residence by Mah Sing, Taragon Puteri Cheras.

But the one that sets the bar in terms of luxury should be this one by Glomac. Location-wise, it has an excellent spot, right beside the forest reserve, with a breathtaking view of the greenery and two lakes either side. Part of the site is actually the abandoned golf course project. For the moment, there is plenty of greenery that gives this site its appeal, however there maybe future developments across the road, but they’re pretty sure the forest reserve side will not be touched.

Suria Cheras is located on a narrow strip of land, along a north-south axis. The developer has planned 58 units only, mostly semi-D units and 2 units of bungalows. The bungalows are pretty much the same as the semi-D, but without the attached next door unit (located at the cul-de-sac). Actually, according to the salesperson, some of these remaining 56 units are semi-Ds, some are link bungalows. From what we can see, there is actually very little difference, save for a terrace in between the two adjoining units, going halfway through the length of the unit. It’s something you need to see it to visualize it.

But in general, the units are 5+1 rooms (6 baths) set on a large standard 40’ x 80’ plot, and the build-up ranges from 3,359 to 3,404sq.ft. We didn’t have the details for the bungalows, but we reckon it should be the same. There are two and a half storeys, with the topmost floor housing a bedroom / utility with an attached bath and an ample balcony. The master bedroom on the first floor is really spacious, with a walk-in wardrobe and an attached private study. The other bedrooms all have their own attached bathroom, with is a very good idea. There is a large guest room on the ground floor also with it’s own attached bath, and a maid’s too. Some of the units are only 2-storey, layout is the same minus the top floor.

They’ve gone for an open concept here with no gates and boundary walls separating neighbours, since with the guarded and gated concept, it provides a pleasant feel while not compromising on the safety. Just so long as you get good neighbours…

The façade of the house is a contemporary design, with the pitched RC roof, extruded walls and white and pastel coloured paint. Those who fancy modern design (like us) will really like it. With the ample internal space, it’s hard to go wrong, especially with some Malaysians’ obsession with large spaces.

Pricing – the semi-D’s start from RM648k while the link bungalows clock in at a slightly higher RM743k onwards. Pricey, but we feel it’s worth the money for a freehold land, good location surrounding by a good view of greenery. However, Cheras isn’t really our cup of tea, although this is quite far from the maddening commercial areas that lends its notoriety. We also liked that it’s a small and low density development, and we hope there won’t be overdevelopment in the surrounding areas over the next few years.

In terms of facilities, there little to offer considering that much of the 10.2acre land is taken up by the units, but there is a small pool, and children’s playground near the entrance. But the perimeter of the development and all the empty spaces between the units are extensively landscaped. Part of the lake is in the development site, and is located next to the aforesaid playground and pool. There is also the security as part of the gated and guarded concept.

We liked that it’s low density, freehold, and has a good view of greenery around it. We are not particularly fond of Cheras, but this place, although it’s a little far in, is quite a distance away from all those areas in Cheras that lends it notoriety to the name. We hope that there won’t be overdevelopment in the hilly areas surrounding this place, but it’s probably something the developer can do little about.

Maintenance fee is expected to be RM275 per month, mostly for the security.

Glomac is actually a sizeable property developer with many major projects going on around the country, we have reviewed their Suria Stonor here in Property Malaysia.

Reader Eddie has sent us some site progress pics of USJ1 Avenue. Thanks, mate. The original review is found here.

If anyone wants to put up pics of your project, mail ‘em to us and we will post them up…

There’s a queue of reviews to be posted (partly due us being pretty free these days) but this one is moved up the line due to special reasons. It was only opened for sale today, and by the time you read this article, the units would have probably been snapped up already.

There are only 82 units available, and 10 units are reserved for employees of the developer, so meaning only 72 units are available. First dibs are for registrants only, and judging from the response we saw at the sales office at about lunch time, they don’t even have to open to the general public.

Part of the reason of the overwhelming response is that Bandar Kinrara has built itself a reputation after so many years and dozens of launches. The place speaks for itself, it is low density, houses are well designed, there are lots of sports amenities including the golf course, and there’s even a hypermarket under construction. For those interested to know more about Bandar Kinrara, you can read our Development Review written some time back which serves as a basis for our review of the individual phases:

Development review: Bandar Kinrara

There you can read our take on the quality, facilities and connectivity of the development. The individual phases that we have reviewed so far here in Property Malaysia can be found here:

Harmony (22′ x 75′ linkhouses)
9@Kinrara (22′ x 75′ linkhouses)
Damai@Kinrara
The Oasis

Another reason for the good response to this launch is that there has not been a new launch of affordable linkhomes in Bandar Kinrara for more than a year. In the interim, most of the launches (which have been quite scarce, too, considering the extent of development in the area so far) have been more upmarket types.

Spektra is located on a square parcel of land off Jalan Kinrara 6B, and is surrounded by existing homes from earlier launches. So you don’t have to put up with ongoing construction near your place with the dust and noise, except when your neighbours are renovating. The 7 neat rows of homes, with 10 different types of layout. The reason why there are so many types is because each row has a minimum of three types – intermediate, corner and end lots. There are also a few even bigger cul-de-sac units, which take advantage of a more spacious plot size. With so many types to choose from, and with the build-up starting from 1,821 to 2,351sq.ft., it really boils down to the buyer’s preference. Units face north or south, but there are two rows facing east or west.

Aside from the homes and roads, there is no green space within this parcel, nor are there any parks or oxidation ponds, but there is a nearly substation. But generally, there are other nearby parks within walking distance.

Intermediate units start from RM295k onwards, and the most expensive cul-de-sac homes are priced at almost half a million. For the intermediate homes, the price is slightly higher than what you would pay for a double-storey linkhome, but of course you have to look at it from the perspective of the whole package deal of the mature township in Bandar Kinrara, plus that is also freehold.

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

Sunway Cheras is actually a landed development launched about 2 years ago. The earlier phase 1 and 2A, are almost ready for handover, and now they are opening up the last 2 phases, which are two and two-and-a-half storey 20’ x 70’ linkhomes.

The piece of land in question is actually two adjacent pieces facing each other separating down the middle by an existing road in Cheras. This road has actually been around for a good few decades, leading from Taman Cuepacs up to Venice Hill. The two pieces of land also covers an existing petrol station.

Because the of the nature of the land available here, plus the fact that this is a very busy road to begin with, there is not much privacy, to make it a ‘gated and guarded’ private community that is so in vogue these days. The project is also surrounded by other old developments that have been around as long as Cheras has. At the moment there are two ways to come via from the main road – one if from Phoenix Plaza (turning in at the military camp) and the other is further up the road off the Cheras-Kajang Highway. There is plan for another access which bypasses the busy military camp interchange, which is through Taman Segar Perdana, but this road will only be ready once Mah Sing completes their portion of the works for their development (also launching soon).

Besides that, there is not much to tell about the project – it’s easy to spot as it is along the road, they offer no-frills traditional linkhomes design, and its freehold. On the larger plot of land (south of the dividing road) there are 9 rows of units, and is where Phase 2B is located. The northern half is where the two types of Phase 3 units are found, and there is a connection road to the aforementioned Segar Perdana.

Landspace is tight here, there isn’t much room for landscaping or parks or any of that sort, but they have little pockets of green. Most of it is just rows of homes and roads. A bit like how housing estates were designed 15 years ago.

There are 2 storey linkhomes and also a 2-and-a-half storey units for choice. Units face either North or South. The layout is pretty conventional, in fact it’s almost similar to our house bought 15 years ago…

The developer knows this and they’ve added lots of freebies to entice buyers here. Packaged together with the house are free alarm system, autogate, motion sensor system, solar heating panel, that kind of thing. Also they offer free security patrol for one year after VP, after that, well…

The units here are actually 5’ longer than the earlier phases, and this pricing has also increased in tandem. They generally start from RM370k onwards for 2 storey, and RM480k for the 2 and half variety.

The good news is that it’s freehold. And Sunway isn’t some fly by night developer, so some assurance can be sought there. Also since the first few phases are close to be handed over, you can see what kind of quality of finishing you can expect for your unit. We didn’t personally go and check (it was barricaded) but these things something work can work both way…

Some of you may remember we ran a poll on April 3 on ‘Freehold versus Leasehold‘. It ran for one week until April 10.

We would like to thank everyone who participated in the poll, it’s was a success with more than 250 votes from our readers. The results are shown below:

Looks like an overwhelming majority of voters (65%) prefer freehold as opposed to 12% opting for leasehold. Very interesting, no wonder developers are advertising their Freehold properties with huge premium. 19% of the voters didn’t mind either while the remaining 4% didn’t know the difference. Perhaps one day soon we’ll put up an article soon on the subject.

It’s was a fun exercise, and also to gauge the reader’s preference on properties, we’re looking to do one or two every month, maybe you guys can suggest what topic to do next?

You’d think that there wouldn’t be anyone who’d build a condominium in USJ1 right in the bustle of business and traffic there, but apparently there is and there is definitely going to be. The location is right behind Summit USJ, and next to the KESAS highway, off one of the busiest interchanges in Subang Jaya.

Part of the reason why traffic is identifying feature here is because there is two huge hypermarkets here, the places where almost everyone around here goes to. The neighbourhood surrounding the site is almost entirely made of light industrial zones.

Perhaps this Impian Meridian may be catalyst of change for the better in this district, but judging from the experience of Summit USJ, this may be a (very, very) tall order. There is a proposed interchange coming in from the KESAS highway further up, coming in from the side of the hypermarkets, but there is no indication when this will be completed and how much it will help ease (or intensify) the traffic condition.

Impian Meridian is a shopping centre and office with condominium above it. There has been a spate of this type of development around the Klang Valley, nearer here is the recent Empire Subang. We’re not entirely convinced that there is a real demand for this type of retail space from the purchasers to justify the seemingly oversupply materializing in the next two to three years, but it will only remain to be seen. To be fair, most of these shopping centres are not mega large ones in the mould of Mid-Valley or 1-Utama, they (like here) are more of shopping malls consisting of road fronting shops primarily to serve the tenants of the condo above and maybe some of the surrounding areas. In this case, there is virtually no surrounding housing areas (and then there is Summit already), so there is less catchment here.

So therein lies another problem. The residents’ market is usually not sufficient to support so many retail outlets, as proven by a lot of these similar type of projects in other areas of the Valley. But there are of course exception to the rule.

Anyway, let’s talk about the condo. There are 3 floors of shopping malls, followed by 4 levels of above ground parking, then there is the common floor for the condo facilities, and then about 20 storeys of condo levels. At the very top, there is a sky lounge for residents, a concept much copied by every other condo these days, few can really execute it well to justify the marketing hype really.

There are two conjoined towers here, and only Tower A is open for sale at the moment. Tower A has units facing North or South, which is better than the subsequent Tower B which faces East-West. For tower A, the units facing North enjoy the pool view, and also a premium of about RM3k to RM4k. There are 14 units per floor, with two types of units to choose from, either intermediate or corner unit.

The intermediate unit (995sq.ft., 3 bedrooms 2 baths) is priced at about RM235psf. It has an open kitchen style, and the show unit has added a glass wall to separate it from the dining, and it seems a better idea. A large balcony is given here, and at the higher floors this is designed as a lanai, which is basically the same except with enclosed windows. The 3 rooms are almost the same size, and the 2 baths are pretty small.

For the larger corner unit (1,302sq.ft, 4 bedroom 2 baths), it is pretty similar to the intermediate with the exception of an additional room. This room has very little ventilation (only a small window out to the yard) so it works better as a study, besides it too small to be an AV room. The pricing here is about RM328psf.

The units come with 1 or 2 parking bay depending on the build-up. In terms of facilities, it is quite impressive given that they have allotted a large enough space to do something substantial, and there is a large pool and numerous sports facilities.

PJD are experience developers with some good condo designs under their belt, but this one has the disadvantage of the location. Some of the other projects by them reviewed in Property Malaysia are Hartamas Regency 2, Kensington Park, Laman Oakleaf and Endah Puri.

With the boom after condos and apartments along this really happening street, we were quite interested to take a look at this latest project. But what greeted us something entirely different from what we expected, and it was only after some deliberation that we decided to include a review of the place here in Property Malaysia.

But first on the location – when we say boom, it definitely is one. Long time ago, there was only he Mesiniaga building, Subang Parade (plus that small gardening shop behind it), Wisma Consplant, and some government offices here in Section 16 of Subang Jaya, right in front of the KTM Komuter station and second hand car showroom. Later came Wisma Tractors, and Carrefour. But in the past few years a few condos appearing here is set to transform this rather docile business district into something more vibrant. Some of the ones along this road are as follows:

Saujana Residency
One Subang
Subang Avenue
Tiaraville (including e-tiara)
Jana Towers (this one went all wonky until just recently. Besides, this one is also bit up the road)

And now, there is another huge project to add more cars to the roads – Empire Subang. Let’s get one thing straight – this is a massive commercial and investment project, targeting businesses and investors. At the centre of it is Empire Gallery, a 3-storey shopping centre, set to grab the limelight from neighbouring Subang Parade (which is beginning to show its age despite a recent facelift). Above the Empire Gallery is a tower of SOHO units, and at each flank are two other towers, one is a soon-to-be launched office block, and another is a hotel Empire Suites.

The way they’ve set up the hotel is really different – investors are invited to buy ‘units’ (actually the hotel rooms or suites), and rent it back to management for a Guaranteed Rental Return of 8% (it’s really about 7% if you read the fine print about maintenance fees). The setup here is rather complicated to get into, and since it isn’t a property for residence, it is outside the scope of Property Malaysia. Nevertheless, sales have been good and at the time we viewed it, only a handful units of the 217 were left unsold. For the record, the room sizes are from 368 to 522sq.ft. and units cost about RM169k – RM252k.

Obviously the office block and shopping gallery is also outside the coverage of our blog, but the only area we can cover is the SOHO units, which is also considered borderline. Why so? Most of the buyers, we feel will be investors looking to rent out to small businesses. There are only 2 type of units available, a smaller one at 793 or 797sq.ft. (a slight variation of the layout accounts for the extra space) and there are also very limited number of units at a larger 1,193sq.ft.

Actually, this unit layout is also quite confusing, and we’re betting a lot of people will caught unawares of it. The brochure shows the layout to a single floor of 542sq.ft. But it doesn’t mention that the unit comes with a ‘renovation package’ which adds a mezzanine half floor to your unit. However, ALL units come with this ‘renovation package’ and you can’t choose not to have it, it pretty much comes with your unit during handover. That’s how they account for the 793sq.ft. and 1,193sq.ft. instead of just 542sq.ft. Why then call it a ‘renovation package’? And why confuse people with the different build-up. Perhaps one reason is that the maintenance fee is calculated based on 542sq.ft.

That aside, the unit is studio style and is designed for SOHO, so to speak. There is a small entrance foyer, and the unit is split into two, front being the dining, and the kitchen taking up the back. In the kitchen there is a stairways going up to the mezzanine floor which house a bedroom half the size of the unit. So the dining room has a double volume height. So where’s the ‘Small Office’ part of the SOHO? Well according to them, the entire lower floor can be converted into one, but you won’t have a dining nor kitchen, now would you? What we can see is the whole unit will be an office – upstairs will be made into an office room or store, not a living space.

There is a skybar lounge on the 8th floor of the SOHO block, but you need to be a member to access that area, which means you need to pay more if you want to join. But this lounge is also used by the hotel, so it isn’t an exclusive place as you would expect. There are 30 SOHO units per floor, and all in all there are 8 levels of units. Each unit does not come with any parking at all, you need to rent monthly from the management. All 4 different components of this development will have separate entrances, but they all lead out to the same road, the one that will be quite heavily trafficked when all the condos here are completed.

Anyway, as we said, this whole development is commercial through and through, and it is doing very well in terms of sales. I doubt anyone will want to buy and stay here, since there are other more viable choices around here with better facilities and ambience. So the whole feel of the place will be quite impersonal and different, but if you’re looking to locate your small business, or invest in a GRR scheme, there probably are a few units left here.

The company behind this project has also developed the Loft and the Ara in Bangsar.