Property Malaysia

Perhaps we will finally see the end to some of the issues regarding the approval of hillside projects in the Klang Valley. Currently in the news are some ‘hot’ for projects that have come under vocal protest from surrounding residents. Some of these were highlighted in the press recently:

Development projects approved by the DBKL, which disregard the rules in the Kuala Lumpur Structure Plan 2020 and the Federal Territory (Planning) Act 1982.

Case 1 - Federal Hill

2.1ha (6.2 acres) of land at Lot 55 Plot A, Section 70, Jalan Travers. This prime land belonging to the federal government has been categorised “institutional” use, which basically means that it is land for the police to build their quarters and offices and not for commercial use.

Despite the fact that the DBKL will be holding an objection hearing with residents on April 4, the residents are questioning the relevance of the hearing when construction on the site has already started. By right there should not be any form of construction before the objection hearing.

Case 2 - Bukit Gasing

15.4ha (38 acres) of privately owned land on the KL side of Bukit Gasing, which does not come under the green belt area.

The residents also said that the DBKL had not acted in accordance with the principle of Local Agenda 21, requiring partnership between the DBKL and the public.

The residents have since gone to court to compel the DBKL to hold an objection hearing.

Case 3 - Jalan Gallagher in Taman Duta

In 2005, the developers submitted an application to the DBKL to build 13 blocks of five-storey apartments with a total of 188 units at Jalan Gallagher.

The new development will increase the density in the area by 750% from 10 people per 0.4ha to 84 - that is in violation of the laws.

(source)

The above 3 are under DBKL’s jurisdiction, and another two high profile projects under MPAJ are in Bukit Antarabangsa, which have recently drawn comments from the new MB of Selangor:

State Executive Councillor Ronnie (Liu)… said the developers of both the projects were not allowed to carry on with development until further notice.

Liu said the state was wary of carrying out hillside development especially at Bukit Antarabangsa which was under constant threat of landslide.

(source)

It looks like it won’t be as easy for developers to get hillside projects approved anymore, which is a good thing considering the diminishing green lungs in city and in view of the landslides that has happened recently. Well, at least for the next 4 years…

The developer has sent in some recent site progress photos of the project. The original review can be read here.

The first pair of photos show the construction of the actual units up to architectural works in progress.

These are shots of the show unit which we had the opportunity to view last year.

Some big plans are shaping up for PJ Development Holdings Bhd in the near future. Firstly, they have reported a 122% increase in first quarter net profit of RM14.27 million, and are gearing up to launch three new property projects with total gross development value (GDV) of over RM430 million.

According to a report:

Managing director Wong Ah Chiew said yesterday the projects were the RM250 million Swiss Garden Residences, RM150 million Laman Callista project and the Siarah Oakleaf valued at RM30 million.

“The high-end Swiss Garden Residences in Kuala Lumpur is expected to be launched in January next year and scheduled to be completed by 2010. Pre-tax profit margin is expected at 25%,” he said after its AGM where shareholders approved a resolution to nominate BDO Binder as auditors to replace the retiring auditors, KPMG.

Wong said the twin tower 36-storey development comprised 413 designer service suites which would be built next to the Swiss Garden Hotel in Kuala Lumpur.

The luxury Siarah Oakleaf, with a GDV of RM30 million, would be built in Bukit Antarabangsa on a 2.68 acre site with the soft launch scheduled in December.

The Laman Callista project, a gated community of 192 semi-detached homes, will be built on 35 acres of land in Taman Universiti, Pulai, Johor. Its launch is scheduled in the fourth quarter of its financial year 2008.

PJD have many existing development projects across Klang Valley and the country, and some of the ones reviewed by us in Property Malaysia are:

Impian Meridian, USJ1
Laman Oakleaf
Endah Puri
Kensington Park
Hartamas Regency 2

In the news today:

The purchasers of the abandoned property development project known as Desarina Condominium in Taman Desa have voted in favour of the proposed scheme of arrangement to rehabilitate the project.

In a statement, the court-appointed liquidator Ler Cheng Chye, on behalf of the developer Mega Sakti Sdn Bhd, which is under liquidation, said the unanimous agreement was reached at a court convened meeting for the purchasers here yesterday.

The scheme of arrangement was proposed by Ler and Lum Tuck Cheong, the two liquidators of Mega Sakti in accordance with the provisions of Section 176 of the Companies Act 1965. The main contractor NCK Perumahan Sdn Bhd was also in liquidation.

Federal Territory Ministry parliamentary secretary Yew Teong Look said the government wanted to see the project successfully rehabilitated and would assist as much as possible to ensure its success.

He viewed the proposed scheme as a joint project rehabilitation effort by the purchasers, the project’s bridging and end-financiers and the authorities.

An agreement has been reached with Syarikat Perumahan Negara Bhd to be the main contractor to support the rehabilitation of the project and to fund a substantial amount of the project construction cost.

The project was abandoned with 80% completion since construction started in 1994.

I think it’s a positive move for the house owners that have been stuck with this problem for more than 10 years.

For those who missed it, the The “Property Man of the Year 2007″ was awarded to S.P. Setia Bhd managing director and chief executive officer Tan Sri Liew Kee Sin.

The Malaysia Property Awards is presented by the Malaysian chapter of the International Real Estate Federation (Fiabci).

The other category winners were:

Master Plan category: YTL Land & Development Bhd for the Sentul West and Sentul East master plan

Residential Development (Highrise) category: Stonor Park by Beneton Properties Sdn Bhd

Residential Development (Lowrise) category: Leisure Farm Corp Sdn Bhd for Pinggiran Bayou Village

Resort Development category: Resorts World Bhd for Genting Highlands Resort

Retail Development category: Y.S. Tang Holdings Sdn Bhd for KB Mall

Specialised Project category: Laurent Lim Architect for the Sultan Abdul Aziz Royal Gallery

Specialised Project category: Persada Johor International Convention Centre

Special Award for National Contribution: YTL Corp Bhd for the Kuala Lumpur Performing Arts Centre

If you are getting surprised at the rising prices for property in the Klang Valley, get ready to be shocked even more.

Previously, when paying RM10million for a bungalow in the exclusive areas of KL was pretty steep, now SP Setia are planning to up the ante by launching a limited series of “super high-end” bungalows priced at RM30 million each next year.

Yep, that’s THIRTY MILLION RINGGIT.’

According to them, they plan to sell 15 units of such bungalows at Kenny Hills in Kuala Lumpur, over a period of two years beginning 2008, pending the authorities’ approval on the building plan.

Read it here.

Reader Eddie has sent us some site progress pics of USJ1 Avenue. Thanks, mate. The original review is found here. Very sorry for the delay, we thought we lost the mail with the attachment!

Anyway the condo looks nearing completion and i think the buyers are looking forward to moving in soon.

Reader Andrew has sent in photos of the recently launched phase in Bandar Kinrara called Spektra.

Both are pictures of Type A of Spektra. The original review can be found here.

Seems like it’s taken with a camera phone… but we appreciate any photos from our readers…

Prefab houses are becoming more common in Europe, where natural resources and labor is inhibitive in terms of cost.

But many designers and architects are working on energy-saving prefab homes as part of a green effort, since electricity is another high cost expense.

MDesign has come out with a patented Mcube modular prefab system that not only looks great, but is flexible, solar-powered, and stunningly affordable housing option that exemplifies the benefits of prefabricated building.

According to Inhabit:

The system is based on a translucent 10′-cube module which can be stacked in multiple floors and units for residential and commercial purposes. Made from concrete, steel, and luminous fiberglass daylighting wall panels, the system can be fully erected in 90 days at a cost starting at $100 per square foot! (Yes $100 a foot!). Considering how expensive most sleek SoCal prefab systems seem to be - this is a price tag that really got our attention.

If you check out the website, you can see how beautiful the units look, you would not expect it to be prefab, much less cheap. There are also photos showing the different stages of erection, as a testament of how it can be completed in 90 days.

So what will the budget bring for homebuyers and investors next year?

Good news or bad news?

With each passing year, property and it’s close cousin, construction, play a bigger and chunkier role in the nation’s economy, Malaysians eagerly wait for the budget announcement. Realistically, we hope there will be good news in the forms of more tax breaks and incentives for buying and selling medium cost homes. While luxury homes is where the big money is for developers, most Malaysian do not participate in buying homes in the excess of RM1million, so we hope that there will be goodies for more people to share.

Construction is badly hit with rising prices of materials (like steel) and strangely enough, material shortage (like the recent puzzling cement shortage). Construction costs directly affect home prices, so we hope that there will be some positive changes in that aspect.

So we wait for the announcement.