Tambun Indah seeks JV partners for Klang Valley projects

PROPERTY developer Tambun Indah Land Bhd is looking for joint-venture (JV) partners to spread its wings out of Penang where its flagship project is based.

“We would like to expand into the Klang Valley, but our focus will be more on the outskirts like Kajang and Rawang where there is still plenty of land,” managing director Teh Kiak Seng says.

The company is in “several discussions” with landowners for this purpose, he says but nothing has been firmed up.

“We prefer to do JVs with landowners, the overall returns may be lower but we will not have to come up with so much money to buy land, there's less risk then,” Teh tells StarBizWeek.

For now, Teh and his team are focusing on their flagship project, the Pearl City integrated township in Simpang Ampat, which will have a gross development value (GDV) of more than RM3bil when completed.

The mixed residential and commercial township sits on a 1,001-acre site which is expected to be fully developed by 2020, complete with a business park which will house schools, hotels and hypermarkets.

So far, 450 acres have already been developed into residential and shop units.

There are plans to launch two more projects within Pearl City this year.

“We are enjoying a spillover of buyers from the island where property prices have skyrocketed since 2010,” Teh says.

For example, a terrace house on Penang island now costs around RM800,000. On the mainland, the same type of house would cost some RM300,000, he says.

“We see the gap (in price) eventually closing,“ Teh says, attributing it to new infrastructure coming onstream such as the Second Penang Bridge and the Double Track Commuter Train which will enhance connectivity between the island and mainland.

The proximity of the Pearl City development to more than 10 industrial parks, which are capable of generating thousands of job opportunities, will also play a part in ensuring that its properties enjoy a steady price trend as workers buy up units to live in, according to Teh.

He says that apart from the two residential projects within Pearl City that Tambun Indah will launch this year, there are three more, namely the RM39.3mil BM Residence in Bukit Mertajam, RM41mil Carissa Villas in Bagan Lallang, and the RM180mil Straits Garden in Jelutong on the island.

The funding of Tambun Indah's new projects will be through the issuance of 88.4 million shares through a rights issue which will raise RM44.2mil.

The two-for-five rights issue, which was approved at a recent shareholder meeting, is expected to be completed in June. It would also effectively increase Tambun Indah's share capital to RM154.7mil, comprising 309.4 million shares.

After these new projects are launched, Tambun Indah will have more than 600 acres of undeveloped land, mostly in Pearl City and some on the island.

The company currently has 10 ongoing projects, mainly residential that it launched over the past two years.

“These have had an average take-up rate of more than 80%,” Teh says.

Gross margins stand at about 30%, he adds.

Tambun Indah, which claims to be the first to introduce the concept of guarded and gated (landed property) in Seberang Prai, made a net profit of RM23.6mil for the financial year ended Dec 31, 2011 against a net profit of RM25.2mil a year earlier.

“I personally believe that prices on the island, the highest at about RM1,200 per sq ft now from about RM800 per sq ft in 2010, will not go up further due to increasing competition. We intend to benefit from that,” he says.

On average, Tambun Indah's Seberang Prai properties are selling at below RM300 per sq ft. More than 90% of its property development projects are located on the mainland. - The Star

Shopping mall in the cards

MAH Sing Group Bhd plans to develop a 1 million sq ft shopping mall for the Southbay City mixed-development project on a 13.7ha site in Batu Maung, Penang, next year.

Group chief operating officer Teh Heng Chong said the shopping mall would be positioned to attract shoppers from the northern region market.

“Once the second Penang bridge is ready next year, we can anticipate a strong flow of visitors from Seberang Prai to the island.

“Thus, we want to have a mall in Southbay City to tap into the business opportunities from the north and Seberang Prai,” he said in an interview.

He said they planned to start the project’s construction next year, adding that they had yet to work out the cost of the mall which would be part of the approved Southbay City master plan.

On the two residential suite towers in the RM329mil Southbay Plaza, which is part of the Southbay City project, he said Mah Sing had sold the bulk of the units for both the towers.

“Since the launch of the two towers late last month, we have sold 80% of 106 units belonging to the 32-storey Tower A and 75% of 100 units belonging to the 31- storey Tower B.

“The Tower A and Tower B units with built-up areas of between 1,107sq ft and 1,761sq ft, and 1,433sq ft and 1,714sq ft respectively, are sold from RM830,000 and RM1.2mil onwards,” he said adding that most of the units would be sea-fronting.

Teh said the two residential towers would be equipped with facilities such as infinity pools and gymnasiums.

“Below the two towers is a four-storey shopping podium with 100,000sq ft of retail space.

“There are a total of 731 car parking bays, of which 213 bays are for the commercial scheme while the rest are for theresidential suites,” he added.

Teh said the Southbay Plaza residential suites sold well because they were near to Queens-bay Mall, Eastin Hotel, Equatorial Hotel, Penang International Airport, and 1km away from the second bridge.

He said the entire Southbay City project would take five to eight years to complete. - The Star

The private home buyer’s journey — Ong Kah Seng

MAY 11 — Private home buying interest has remained significant despite the Singapore government imposing five rounds of market cooling measures in the past 2½ years, with sales of suburban condominiums remaining buoyant even as prices scale new heights.

The proliferation of shoebox apartments has also meant that more are able to embark upon their personal quest for a dream property. Indeed, the surge in supply of these small units in recent years has been met by overwhelming buyer response.

Whether it is an individual home buyer or joint property investors or families going for a better quality of life by upgrading from HDB flats, there is often a strong motivation for targeting that favourite property.

For investors, the motivation is more direct — perceived financial returns. Investors generally are seasoned property players, although there will be the new investors. The newbies, together with single owners of small apartments as well as some HDB upgraders, may have been primed for the purchase by various factors. They will find that the quest can be both exciting and stressful.

The majority who embark on buying private property decisions have been roused in some way.

For some, such awakening may have come from seeing their peers profiting through property investments and speculation. For some singles who buy shoebox apartments, it may stem from a desire for independence, to live apart from their families. There may also be those who have visited friends who live in private homes and are inspired to own one as soon as possible.

Daily leisure activities may also have shaped one’s desire to buy a property. In addition to fanciful show flats, shopping can also conjure up a liking towards property. With the arrival of many mega malls and big-box retail stores that present a convenient array of exciting offerings, the leisure shopper is spoiled for choice.

Home design concept stores, furniture chains and boutiques showcase all kinds of DIY offerings or professional services to consumers, some of whom are planning to own a home. And for those on tight budgets, buying a smaller or far-flung property will become more of an urgency.

Upon setting his or her mind on buying a home, the property seeker will likely use different means to source, compare and affirm the property choices. Most property seekers will validate these through studying and understanding district development plans, consulting friends in property and mortgage-related trades to ascertain the property’s potential and financing requirements.

The process will be both intensive but exhilarating for the earnest buyer, particularly for one with limited investment background who gets to understand many property and financial concepts.

The recent months have seen tremendous sales perks from developers — in the form of rebates or discounts from listed prices. Such schemes are surely attractive for those who have already tuned themselves psychologically into the mode of buying. The quest for private homes has also extended from developer sales to the resale market recently.

Buyers who have concluded their house hunting and purchase will be most excited to share the journey with peers. But it must be noted that while the property hunt is thrilling, the actual journey begins after one commits to a purchase.

The real benefits and the financing requirements will go hand-in-hand, depending on prevailing market conditions and whether the rental income is sufficient to meet the mortgage payments and other expenses. These have probably been downplayed in today’s context of an increasing desire for wealth opportunities and higher risk thresholds.

The current thinking is that given the large number of uncertainties, whether economic or supply-led fluctuations or possible policy calibrations, a buyer should not think too far but enjoy the direct benefits of owning the property. Since there are so many uncertainties, it is “the journey that counts rather than the destination”.

The past decade has seen the prevalence of “specu-vestors”, but since the harsh additional seller’s stamp duty of last December, speculation has become a thing of the past.

Most investors are now also thinking of owner-occupation should the property not be able to be rented out, hence creating another group that can be called “investor-piers”. That’s also a major property-owning mindset for many shoebox apartment buyers.

While the destination may not count as much as the journey, if the buyer enters the market at the wrong time or overestimates his long-term financing capacity, the journey will be a long and difficult one. — Today

* Ong Kah Seng is director at R’ST Research, an independent property market research company in Singapore. - The Malaysian Insider

提议槟恢复自由港 邓章耀出秘密武器？

（槟城10日讯）槟州恢复自由港，国阵夺回槟州政权有望？消息说，新科上任的槟州国阵主席邓章耀已向中央政府提议，恢复在1969年被取消的槟州自由港地位，成为即临大选赢回槟州民心的“秘密武器”。
一般相信上述建议一旦获国阵中央政府点头，将是一项振奋槟州人心的消息，对槟州国阵图夺回政权将是一项杀手锏，民联政府或可能在被动下，面对挨打局面，甚至可能在人民相信民联入主槟城无望下，造成后者丧失政权。据英文新海峡时报在周四的封面报导即引述消息说，邓章耀已将建议提呈给首相署部长丹斯里莫哈末耶谷以及马来西亚旅游局主席拿督黄泳铼，而邓章耀也针对消息，没有作出否认，使到一般相信有关消息来源并非空穴来风。
据了解，从邓章耀在周二选择在面子书上提出着重服务业及将槟城打造成国际旅游天堂的说法，那么自由港或是其实现其远大计划的其中必要先决条件，一般相信邓章耀必然是胸有成竹下才会提出国际旅游天堂的远景，恢复自由港或将成为槟州国阵争取选民支持的“礼物”。
无经济效益　丁福南唱反调
恢复自由港一厢情愿，邓章耀成“独行侠”？有消息指邓章耀向联邦政府提议恢复槟州自由港引起关注时，槟州民政党主席拿督丁福南医生不只对此事不知情，更与邓章耀唱反调，反对槟州恢复自由港。也是前行政议员的丁福南即向本报记者认为，恢复自由港相信只是全国大选即临时政党的一个花招，反对党在多次选举时也提出恢复自由港一事，而他认为，时代改变了，自由港对槟城不会带来太大的经济效益，反之他说槟城已有自由贸易区，在自由贸易区的外国货源在不须缴税务下再加工后转运至其他国家。更何况他说，很多货品已豁免税务，比如皮革品、电器等都不须税务，不过，他承认一些奢侈品比如香水、烟酒还须税务。尽管他说在自由港下汽车也将免除税务，唯他认为知易行难，若要还回槟州自由港，头痛的问题是它将只限槟岛还是扩大至威省，形成一州两制？他说，若只限槟岛，那么将如何顾及威省人民的感受，若扩大至威省，那么将在执行监控上面对困难，到时将会有很多的漏洞，造成政府把关不易。- 光华

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生产高科技音响系统 波士在槟投资设厂

槟城9日讯）槟州首席部长林冠英宣布，世界其中一家高科技音响公司波士（BOSE）将在槟城设立在亚洲太平洋地区的首间工厂。他说，波士每年收入约22亿8000万美元，在美国福布斯2011年最大私营企业排行第195，这家生产高科技及高素质音响系统的公司，是为了他们在亚太地区的客户，来到槟城设厂。
林冠英：槟州又再领先
他认为，这是槟州又再领先的喜讯，因为槟州向来是知名的半导体中心，最近也是发光二极管的中心，而波士公司在槟城设厂，将使音响爱好者感到雀跃。他是于周三在光大28楼见证槟州发展机构与Bose机构签署土地买卖合约时，致词中如此指出。据波士制造及全球供应链副总裁柏莱恩透露，以单一建筑物而言，槟城的厂房将是该公司在北美洲以外最大的厂房。
峇都加湾设厂　明年料生产
他续透露，槟城波士工厂将在峇都加湾一块23英亩土地上建立，厂房面积为60万平方尺，以及预料将于2013年投入生产。他强调，槟城工厂主要是为亚洲太平洋地区的顾客提供服务，这包括澳洲、中国、印度、日本、阿拉伯酋长国及东协国家等。但他不愿透露波士将在槟城投资的总额。
波士集团执行副总裁赫伯透露，该公司是于1964年由阿玛G波士博士创立，当时他是美国马萨诸塞州工艺研究中心的电器工程教授，他在该工艺研究中心的毕业研究导致他开发新的专利工艺，以及在该破空中心的激励下，他以有关的专利工艺创立自己的公司。他说，波士是一间由私人拥有的公司，波士博士为主席及技术总监，以及该公司也继续在长期研发方面作出显著的投资。他强调，波士在研究方面的投资承诺，是为了达到公司的主要目标，即开发突破性的产品及工艺，以改善人们的生活。他续透露，波士于2011年销售额为25亿美元 ，所雇用的员工超过9千人。- 光华

Rising value of properties a real concern

KUALA LUMPUR: The Government needs to address the issue of affordability of residential properties as persistently high prices have become an issue to many people.

“We have computed the affordability (issue). Prices have risen to a level that has created some concern. In fact the International Monetary Fund (IMF) in its Article 4 consultation report has mentioned that this is the main risk or vulnerability facing the Malaysian economy: overvalued house prices,” Ratings Agency Malaysia Holdings Bhd (RAM) chief economist Dr Yeah Kim Leng said.

“It is not a bubble yet largely because for certain segments the income level is sufficient to absorb those kind of (high priced) houses. But there comes a point where you will find declining demand largely because of rising vacancies or declining rental yields that will help to cap property prices,” Yeah told journalists at a press briefing yesterday after RAM's annual general meeting.

Yeah expected an eventual soft landing for the property market in Malaysia but also said that developers should be ready for any change in market dynamics.

“Developers must take the risk that should there be a slowdown or market crash (that) they are in a position to absorb it without creating problems for the banking sector or economy. But at this juncture we are quite comfortable that most developers are going in (to the market) with their eyes fully open,” Yeah said.

“Most of the property companies that we have rated (credit rating) are fairly strong in their credit quality. Overall we are looking at maybe certain smaller developers that will be at risk but by and large I think that the property market is in a sustainable basis. But watch out for too high prices that will create affordability problems,” he added.

Meanwhile, RAM's CEO Foo Su Yin said the agency expected corporate bond issuances for the whole of Malaysia will total between RM80bil and RM85bil this year from about RM70bil in 2011 noting that issuances had accelerated in the first four months in 2012 compared to the previous year.

“The issuance in the first four months of RM44bil has already exceeded what was (at the level) half year last year so the RM80bil-RM85bil is achievable this year. We expect most of the bond issuances to come from the infrastructure and the banking sector,” Foo said.

On another matter, Yeah said that the Malaysian economy should be fairly protected against any economic shocks that comes out of Europe due to the ongoing economic crisis there and that the first quarter economic growth may even beat analysts expectations.

“Domestic demand has been fairly robust and with slightly firmer exports we should be doing fairly well. Nevertheless the risks still remain substantial because of the, so-called, regime changes that had happened in Europe that put the whole Euro at risk. Malaysia has so far been able to ride through the soft patch in the global economy,” he said.

Meanwhile, on the issue of the growing government debt or also known as deficits of presently about 56% of GDP, Yeah said this figure may hover at about 56%-57% by the end of this year and said debt should ideally be used to finance productive investments to ensure future economic growth.

He also said the risks from the non-bank lending sector also known as the shadow banking system could be limited as its portfolio was relatively small compared to total bank loans portfolio and may not pose a systemic risk to the economy at this point in time.

“We may have however, isolated problems arising but it should not pose a systemic risk to the economy or banking sector,” he added.

Over 320 new private homes sold in a week as rates hit rock bottom

SINGAPORE: New private home sales continued their strong run, with at least 325 homes snapped up over the past week as rock-bottom interest rates and new project launches kept propping up the market.

A report by UBS Investment Research said that more than 200 units at 99-year leasehold Eight Riversuites in Whampoa East were sold during a private preview over the weekend.

The average selling price was S$1,400 per sq ft, after buyers were given a 5% early-bird discount. This is higher than Allgreen's 999-year leasehold Riviera 38, previewed in October last year, which is priced at about S$1,100 per sq ft on average. Allgreen's project, however, is farther from Boon Keng MRT station.

Eight Riversuites' one-bedroom units of about 450 sq ft were priced at about S$600,000 while the two-bedroom units of about 700 sq ft cost about S$900,000.

They made up about 60% of the 862-unit project and were the most popular among buyers, the report added.

“Agents were keen to make comparisons with freehold City Square Residences, which is integrated with a retail mall and located one MRT station closer to the city, where small-format units are enjoying strong rental demand and a heftier price tag of S$1,600 to S$1,700 per sq ft,” it said.

Far East Organization sold another 67 units at 338-unit Seahill in West Coast Link, bringing total sales to 185 units since the 99-year leasehold project previewed at the end of last month. The average price of the units sold was S$1,329 per sq ft.

The developer also sold 34 more units in its other projects like Hillsta in Choa Chu Kang, euHabitat in Eunos and Silversea along the East Coast.

Over at 679-unit Ripple Bay in Pasir Ris, MCL Land said that it sold another 27 homes, bringing total sales to 532 units at an average of S$870 per sq ft.

Buyers have snapped up new private homes at such a blistering pace that the 6,682 homes sold in the first three months of the year set a new quarterly record. Many of these are tiny shoebox apartments of 500 sq ft and less.

PropNex chief executive officer Mohamed Ismail said the sustained sales momentum showed the appetite for new projects in good locations that were priced reasonably remained strong.

He expects demand to remain healthy for the next one to two quarters. - The Straits Times/Asian News Network

Six months free condo living in Lion City

SINGAPORE: A property developer is offering a family the chance to live for free for six months in a fully furnished condominium unit in Kovan.

But it is not really a marketing gimmick to whip up interest in Fiorenza, launched last year, as all but two of its 28 units have been sold.

Rather, it is a test bed of sorts for Koh Brothers, which hopes to gather useful feedback on “lifestyle living”, as opposed to just selling an unfurnished unit.

Touted as a “concept home”, the two-bedder has space-saving, tech-savvy furniture suitable for smaller homes.

Smart features in the fifth-floor unit include a dining table that converts into a coffee table, a foldable bed which can double as a study table, motorised sun shades and multi-room surround sound.

The successful family who will not be obliged to purchase the unit should be a family of three, including a child, and be able to give fair feedback and comments about their experience.

To apply, they will also have to submit a 100-word essay on why they deserve the “best experience in life”.

Utility bills will be paid by the developer but the family will have to bear costs such as cleaning the apartment.

The flat, fitted with everything from a washing machine to cutlery, measures 1,367 sq ft, of which nearly 500 sq ft make up the rooftop garden, leaving about 872 sq ft of indoor living space.

Units at Fiorenza have been sold at an average price of S$1,000 to S$1,100 per sq ft. The “concept home”, with all its furnishings, will cost some S$1.6mil; the unit alone costs about S$1.4mil.

Koh Brothers managing director and group chief executive Francis Kohsaid the idea for the “concept home” was conceived nine months ago.

“It's a passion for us, to improve the living conditions for the dweller ... so that they can experience what is ambience, nice avant-garde furniture, at the same time optimise the space,” he added.

He said the feedback he gathered would be used as tips for future developments. - The Straits Times/Asia News Network